SharpLink Begins $1.5B Buyback as Ethereum Treasury Powers Growth

2025-09-09 15:12

Newsroom

Why is SharpLink investing $1.5 billion in a buyback plan?

How does SharpLink's Ethereum treasury play a role in their business strategy?

What does SharpLink's $1.5 billion buyback mean for the investor community?

SharpLink Begins $1.5B Buyback as Ethereum Treasury Powers Growth — Image source: Unblock Media

SharpLink Gaming initiated its $1.5 billion stock buyback program, benefiting shareholder value.
The buyback is backed by Ethereum staking revenue and a debt-free balance sheet.

On September 9, 2025, The Block reported that SharpLink Gaming, Inc. (Nasdaq: SBET) had initiated its $1.5 billion share repurchase program. The company has already bought back approximately 939,000 shares at an average price of $15.98 per share.

The company emphasized that the buyback is "immediately accretive" to stockholders, as shares are trading below their net asset value (NAV). SharpLink’s NAV is largely supported by its Ethereum holdings, which are valued at approximately $3.6 billion. The company’s debt-free balance sheet further enhances its financial flexibility to execute this initiative.

SharpLink disclosed that its significant Ethereum treasury will primarily fund the buybacks. Nearly all of the company’s Ethereum holdings are staked, generating annual returns estimated at 3.8% to 4%. As of the announcement, staked Ethereum provides a consistent revenue stream to support continued share repurchases.

The repurchase initiative underscores SharpLink’s focus on enhancing shareholder value. Co-CEO Joseph Chalom stated that the program enables the company to capitalize on stock undervaluation relative to its Ethereum-supported NAV, reflecting a strategic approach to maximizing returns for stakeholders.

Market data revealed a positive response to the announcement, with SharpLink’s shares gaining value following the news. The company confirmed it had not utilized its at-the-market (ATM) facility, citing the stock’s current trading price below NAV. This approach avoids diluting the Ethereum-per-share metric while ensuring repurchases are funded through cash reserves, staking revenue, or other reliable financing sources.

As of September 9, 2025, 15:08 UTC, Ethereum (ETH) traded at $4,299.98, reflecting a 1.29% decline in 24-hour trading volume, according to CoinMarketCap.