NASDAQ: SBET shares soared Friday following SharpLink Gaming’s announcement of a $1.5 billion common stock repurchase program, signaling a bold move to optimize capital allocation and reinforce shareholder value.
The company—now one of the largest corporate holders of Ethereum (ETH)—said the buyback plan allows it to act decisively when its stock trades below the net asset value of its crypto holdings. Co-CEO Joseph Chalom emphasized that issuing new equity to fund additional ETH purchases under such conditions would be inefficient, making buybacks a more accretive strategy.
“This program provides us with the flexibility to act quickly and decisively if those conditions present themselves,” Chalom stated.
Market Reaction & Financial Impact
With a current market capitalization of $3.05 billion, the proposed buyback represents nearly 50% of SharpLink’s market value. Investors responded swiftly—shares jumped over 12% in late trading on volume well above the daily average.
Ethereum Strategy Drives Valuation
SharpLink’s aggressive crypto treasury strategy has positioned it as a major corporate player in Ethereum. The firm recently disclosed it raised $537 million for the week ending August 15, including $390 million via direct equity offerings to institutional investors. That capital injection boosted its ETH holdings to 740,760 coins, with a concentration of 3.87%—nearly double its position from two months ago.
The company’s approach mirrors that of MicroStrategy (NASDAQ: MSTR), which famously leveraged equity to accumulate Bitcoin. However, SharpLink’s pivot toward buybacks could reduce dilution and retire shares previously issued to fund ETH acquisitions.
“The stock buyback program is designed to provide enhanced support to the market, optimize capital allocation, and reinforce SharpLink’s long-term commitment to driving sustainable stockholder value,” the company said.
SharpLink Trading Below NAV
Despite its crypto-heavy balance sheet, SharpLink is currently trading at a discount to its Ether holdings, which are valued at over $3.5 billion. This rare divergence from typical premium pricing presents a compelling opportunity for the company to repurchase shares below intrinsic value.
Since launching its treasury strategy on June 2, SharpLink has also earned nearly 1,400 ETH in staking rewards, further strengthening its digital asset base.
