SharpLink Launches $1.5B Stock Buyback Program As Shares Trade Below Ethereum-Backed Asset Value

SharpLink starts a $1.5B buyback program as it sees its stock trading below true asset value.

The company holds $3.6B in staked Ethereum, which earns steady income with no debt on its balance sheet.

SharpLink avoids issuing new shares to prevent Ethereum per share dilution and supports long-term investor value.

SharpLink Gaming Inc. has launched its $1.5 billion share repurchase program. The company has already bought back nearly 939,000 shares. The mean price was $15.98 per share. The move indicates that the company believes that its stock is undervalued in the market.

These repurchases will increase the shareholder value of the company. Management sees the move as financially accretive. The strategy follows SharpLink’s focus on long-term growth while reinforcing investor confidence.

Ethereum Treasury Drives Strategy

SharpLink holds around $3.6 billion worth of Ethereum. Approximately 100% of that ETH is staked. The staking generates steady income for the company. With zero outstanding debt, SharpLink maintains a strong balance sheet. In July, SharpLink boosted ETH holdings to $965M excluding staking rewards

The company has not used its At-the-Market (ATM) facility while shares trade below Net Asset Value. Issuing new shares under these conditions could dilute Ethereum per share. SharpLink prefers to buy back shares instead of issuing new equity.

Company executives continue to prioritize capital discipline. Management has indicated that the ATM may still be used later. However, it would only be done if market conditions allow accretive use.

Volatility and Market Movement

SharpLink’s stock has seen major price swings. Over the past six months, it has gained over 250%. It rose from $4 in March to near $80 in June. The price, after a steep correction, came to settle at about $15 to $16 by September.

Recent volatility reflects the speculative nature of crypto-linked stocks. Market sentiment around Ethereum plays a large role. The stock was recently trading at $16.20 in pre-market activity, showing modest gains.

The company acknowledges the risks but remains focused on Ethereum’s long-term potential. SharpLink also monitors its Net Asset Value closely. The firm intends to buy back stock only when prices trade below this value.

Ongoing Financial Position and Future Plans

SharpLink’s ETH holdings include about 837,230 ETH. This number increased after purchasing 39,008 ETH last month. The average purchase price was $4,531 per ETH Recently, SharpLink bought another 5,226 ETH, bringing the entity’s total ETH holdings to 604,026, worth $2.69 billion. The firm’s staking rewards reached 2,318 ETH by August 31

During the same period, SharpLink raised $46.6 million using its ATM facility. The company may continue to use these funds for future share buybacks. Plans include open market purchases or privately negotiated deals

While SharpLink may pause the buyback program at any time, current conditions support continuation. The company emphasizes transparency through its Ethereum dashboard. This gives investors clear insight into its ETH holdings and income.