Published on: August 22, 2025, 02:02h.
Updated on: August 22, 2025, 02:02h.
- Shares of prominent Ethereum investor surge following buyback announcement
- Firm plans to repurchase up to $1.5 billion of its common shares
SharpLink Gaming’s (NASDAQ: SBET) stock saw significant gains on Friday as the betting affiliate and Ethereum investor revealed plans to buy back up to $1.5 billion of its common equity.
Co-CEO Joseph Chalom stated that if SharpLink shares trade at or below the net asset value tied to the company’s substantial Ethereum holdings, it wouldn’t make sense to issue new stock for cryptocurrency purchases. Instead, it could be an ideal opportunity for share buybacks.
“In such a scenario, it may prove beneficial to repurchase our common stock,” he mentioned in a press release. “This initiative offers us the agility to act swiftly and strategically when the conditions are favorable.”
With a market cap of $3.05 billion at present, a $1.5 billion buyback initiative constitutes nearly 50% of SharpLink’s total market value. In after-hours trading, SharpLink’s shares have escalated by over 12%, driven by considerable trading volume following the buyback news.
The Significance of SharpLink’s Buyback
The large-scale buyback plan is crucial, potentially leading to the retirement of shares that were previously utilized to finance Ethereum acquisitions. SharpLink has emerged as one of the largest corporate stakeholders in the world’s second-largest cryptocurrency, primarily by leveraging its stock to make Ether purchases.
For instance, SharpLink disclosed that it secured $537 million for the week ending August 15, with $390 million stemming from a direct equity offering to a select group of professional investors. This investment increased the company’s Ether holdings to 740,760 and its Ether concentration to 3.87—nearly doubling within two months.
Similar to Michael Saylor’s Strategy (NASDAQ: MSTR), which leads as the largest corporate holder of Bitcoin, SharpLink Gaming is financing its Ethereum purchases through its securities. Issuing new shares—regardless of context—can dilute the current investors’ stakes, which highlights the reason for SharpLink’s stock price increase following the announcement of the repurchase plan.
“The stock buyback initiative aims to bolster market confidence, optimize capital utilization, and emphasize SharpLink’s long-term dedication to enhancing value for shareholders,” stated the press release.
Is SharpLink Undervalued?
Companies with notable cryptocurrency treasury strategies are often perceived as proxies for those digital assets. Consequently, such stocks frequently trade at premiums compared to their net asset values driven by the expectation of future cryptocurrency gains.
In other words, stocks like SharpLink typically do not remain at discounts relative to their held digital assets; however, that’s the case with SharpLink currently. As mentioned earlier, while its market capitalization stands at $3.05 billion, its Ether assets are valued at over $3.5 billion.
Moreover, the company’s staking rewards have reached nearly 1,400 Ether since the corporate treasury strategy was launched on June 2.