SharpLink Gaming has initiated its long-awaited share buyback program, acquiring $15 million worth of SBET shares as part of its ambitious $1.5 billion initiative. The Minneapolis-based company announced that it repurchased 930,000 shares at an average price of $15.98 each. Following the announcement, SBET shares experienced a 4.4% increase, trading at approximately $16.40; however, the stock has seen a stark decline of over 31% in value over the past month, highlighting significant volatility.
SharpLink’s stock buyback program was authorized in August, marking this as the company’s first repurchase activity under the initiative. Co-CEO Joseph Chalom emphasized the company’s commitment to maximizing shareholder value, stating, “With a robust balance sheet, zero debt, and a powerful ETH treasury generating income, we are in a position of strength.” He added that the market appears to undervalue the business, prompting the decision to focus on disciplined capital allocation rather than issuing more equity.
The firm boasts the second-largest publicly traded Ethereum treasury, holding approximately 837,230 ETH, valued around $3.6 billion. In contrast, SBET shares are currently valued at a market capitalization of roughly $3.14 billion, indicating a significant disparity between the company’s actual asset value and its stock performance.
Chalom, when announcing the buyback plan in August, noted that when such conditions arise, repurchasing common stock can be a strategically beneficial move. Despite the recent uptick following the announcement, SBET shares have significantly underperformed compared to the company’s Ethereum treasury over the past month.
In a further boost to its portfolio, SharpLink recently increased its ETH holdings by more than $176 million. With nearly all of its Ethereum staked for revenue generation, the firm is also exploring opportunities on the Ethereum layer-2 network, Linea. As a member of the Linea Consortium, SharpLink is involved in distributing LINEA tokens to ecosystem participants.
The company’s efforts to solidify its financial position and enhance shareholder value appear to be ongoing, yet the market’s reaction to its shares raises questions about the overall perception of SharpLink’s equity in relation to its substantial treasury holdings.
