SharpLink bets big on Ethereum, funding $1.5B stock buyback plan

I’ve been watching SharpLink Gaming launch its ambitious $1.5B share buyback program, and it’s clearly a bold move designed to juice stockholder value. They’re scooping up about 1 million shares of SBET, convinced their stock is seriously undervalued in the current market.

Their logic? Buying back stock at a Net Asset Value below 1 immediately boosts value for existing shareholders. Pretty straightforward math, but what’s more interesting is what’s happening behind the scenes.

SharpLink has gone all-in on Ethereum - we’re talking about $3.6 billion worth of ETH sitting on their balance sheet with zero debt. Even more fascinating, they’ve staked 100% of those holdings, generating passive income that fuels their operations.

The stock’s currently trading around $15.90, up slightly in the last day but down 29% over the past month. Still, anyone who got in six months ago is sitting pretty with gains exceeding 250%.

Joseph Chalom, their Co-CEO, keeps hammering home that “maximizing stockholder value” is their top priority while positioning SharpLink as “the most trusted ETH treasury company.” He’s convinced the market just doesn’t get what they’re building yet.

What strikes me as particularly clever is their capital discipline. Rather than diluting shareholders by issuing equity below NAV, they’re doing the opposite - buying back shares and strengthening their position. They’ve completely avoided using their At-the-Market facility while trading below NAV.

On-chain data reveals SharpLink now holds around 837,230 ETH, having added 39,008 ETH last month at an average price of $4,531. Their staking rewards have climbed to 2,318 ETH as of August’s end. Meanwhile, they raised $46.6 million through their ATM facility in late August.

They’re not even the biggest player in this game - BitMine Immersion Technologies holds over 2 million ETH. BitMine’s chair Tom Lee believes Wall Street’s blockchain migration has created a “supercycle” for digital assets.

I’m skeptical about whether this heavy concentration in a single digital asset represents prudent treasury management, but there’s no denying SharpLink is making an aggressive play that could pay off handsomely if Ethereum continues its upward trajectory.