DraftKings (NASDAQ:DKNG) is moving further into the cryptocurrency space, announcing today it testament stake digital assets to living the Polygon blockchain network. But shares of the gaming companionship are sliding due to an psychoanalyst downgrade.

The Boston-based online sportsbook manipulator said today’s it’s partnering with Zero Hash to post digital assets it holds in its treasury to living the Polygon (MATIC) blockchain network.

With this collaboration, DraftKings is optimizing its workings uppercase and liquidity as it operates a validator guest that contributes to Polygon’s governance and network security,” according to a financial statement issued by the gaming company.

DraftKings announced a partnership with Polygon cobbler's last October. The digital coin — the 16th-largest past marketplace note value — supports transactions on DraftKings Marketplace. That’s the gaming company’s non-fungible item (NFT) unit.

Investors Yawn

DraftKings’ Polygon proclamation is parting of the company’s wider Web3 initiative and potentially a signalise of long-term plans to suit more of a fintech unbendable than just now a virgin spiel gaming operator.

However admirable those plans may be, they are long-ranging. For today, investors aren’t impressed, as DraftKings’ gunstock remains mired inwards a lengthy slump. In midday trading, it’s downwardly more than 10% after Argus analyst St. John Stazak downgraded the gunstock to “hold” from “buy.”

“DKNG is veneer violent competition from MGM and Wynn, which are expanding their online sports betting operations, and inward our vista needs to strengthen its marketing efforts. We also wait revenue growth to slow up inwards 2022, as fewer states approve online sports betting,” he said inward a short letter to clients.

Stazak adds he doesn’t await DraftKings will notch a profitable billet until the July through Sep full stop of 2023. Argus doesn’t specify a toll target to the stock, which was downward 24.68 percent year-to-date entering today.

DraftKings Sportsbook is currently uncommitted in Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Louisiana, Michigan, Mississippi, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Tennessee, Virginia, Rebecca West Virginia, and Wyoming.

Polygon Pertinence

Last year, CEO Jason Robins said he’d like his society to have crypto as a shape of payment for online casinos and sports betting. But tell regulators currently don’t permit that. He’s loosely bullish on crypto, noting the plus year will “likely transform some intact industries and portions of others.”

An increasing number of companies are holding bitcoin, the largest digital asset, on their equipoise sheet. Regarding Polygon comely a larger contributor to the DraftKings investiture thesis, that’s possible shoot down the route if the adoption and usage cases for the digital item expand.

“Polygon is the fastest growing blockchain with in high spirits swiftness and low-toned gas infrastructure. DeFi bluechip dApps including Sushiswap, Curve, Aave, Balancer, Kyber get all structured Polygon,” according to DraftKings.