Esports Technologies (NASDAQ:EBET) may be small compared to other initial public offerings this week, but it is still captivating investors. It seems ahead of the Esports Technologies IPO, Wall Street was honing in on its role as an online gambling platform. So what do you need to know about EBET stock now?
Importantly, Esports Technologies is a Las Vegas-based company that specializes in online gambling for esports and competitive gaming. According to social media chatter, investors are hoping the relatively tiny company can cash in on an accelerating trend.
Here is what you need to know about the Esports Technologies IPO and EBET stock now:
- Esports Technologies is set to start trading on the Nasdaq Exchange today as EBET.
- Earlier this week, the company raised the size of its IPO.
- This has the company expecting to raise $14.4 million by offering 2.4 million shares.
- It also comes as Esports Technologies eyes an IPO price of $6. This is higher than its initial range of $4.50-$5.
- At the midpoint of the new range, it will raise 16% more than previously expected.
- The company formally filed to come public in March 2021, after filing confidentially in December.
- During the fiscal year that ended in September 2020, Esports Technologies reported revenue of just $196,000.
- It reported a net loss of $573,000 in that same time period.
- Esports Technologies primarily develops and operates platforms for esports and gaming.
- The company also runs gogawi.com, a platform for bettors based in Latin America and Asia.
- Essentially, it allows customers to place real bets on esports events for titles like Rocket League, League of Legends and Counter-Strike: GO.
- It also accepts wagers and allows customers to place bets on professional sporting events.
The Esports Technologies IPO and EBET Stock
So what else should you know about the Esports Technologies IPO and EBET stock? And why does this relatively tiny company deserve your attention today?
As many others have highlighted, EBET stock will start trading with a micro-cap valuation. This has it paling in comparison to competitors like DraftKings (NASDAQ:DKNG), another favorite of retail investors. However, it seems that investors passionate about the future of online gambling see this as an interesting stock to watch.
Another thing that investors may be watching is its relationship to cryptocurrencies. According to its S-1 filing, Esports Technologies previously allowed customers to pay with Bitcoin (CCC:BTC-USD) and other cryptos. In the wake of the Coinbase (NASDAQ:COIN) debut, this could help EBET stock stand out.
However, the Esports Technologies IPO is not without risks. Even its connection to cryptos is something the company flags, given the volatile price moves of BTC and its peers. The company does have growth potential, especially with U.S. regulators continuing to warm up to online gambling, and with Esports targeting new growth markets in 2021.
If you are passionate about this trend, make sure to keep an eye on this IPO. Just be sure you also are aware of the risks.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.