SharpLink Gaming announced Tuesday it completed a $15 million share buyback program. The Nasdaq-listed company purchased approximately 939,000 shares at an average price of $15.98 per share.
NEW: SharpLink begins utilizing its $1.5B share buyback program, repurchasing ~1M shares of $SBET.
We believe our stock is significantly undervalued. Buying back stock at NAV < 1 is immediately accretive and compounds long-term stockholder value.
Key facts:
– $3.6B of $ETH on… pic.twitter.com/Wr0WEYLqlb
— SharpLink (SBET) (@SharpLinkGaming) September 9, 2025
The Minneapolis-based firm operates as an Ethereum treasury company under the leadership of Joe Lubin. Lubin co-founded Ethereum and currently serves as the company’s executive chairman.
SharpLink’s stock price fell below the net asset value of its underlying ETH holdings. The company holds approximately $3.6 billion worth of Ethereum with nearly all tokens staked to generate income.
The stock currently trades at 0.87 times its net asset value according to SharpLink’s dashboard. This pricing creates challenges for the company’s core strategy of raising funds through share sales to purchase more Ethereum.
The stock gained 3.6% in pre-market trading following the buyback announcement. Ethereum’s price also rose more than 1% since Monday’s market close, supporting the broader rally.
SharpLink executives stated they have not used their at-the-market facility to sell shares. The company avoids diluting ETH holdings per share while trading below net asset value.
The firm believes its common stock remains undervalued compared to its cryptocurrency holdings. Management views the buyback as a compelling investment that demonstrates confidence in long-term strategy.
Digital asset treasury companies face similar pressures across the sector. BitMine, a rival firm holding nearly $9 billion in ETH, also trades below the 1.0 net asset value threshold.
Both SharpLink and BitMine have declined approximately 60-70% from their July peaks. The drops coincide with cooling cryptocurrency markets over recent weeks.
SharpLink’s business model centers on accumulating Ethereum through equity fundraising. The company then stakes these tokens to generate steady income streams for shareholders.
When stock prices fall below asset values, treasury firms lose their primary funding mechanism. Share sales would dilute existing holders’ exposure to underlying cryptocurrency positions.
The 0.87 multiple means investors can buy SharpLink stock at a discount to its ETH holdings. However, this discount prevents the company from effectively raising additional capital for purchases.
Treasury firms typically trade at premiums to net asset value during bull markets. Investors pay higher prices for professional management and staking services during these periods.
SharpLink completed the share repurchase as part of its existing buyback program authorization. The company has not announced plans for additional repurchases at current price levels.
The post Why SharpLink Gaming Just Spent $15 Million on Its Own Stock appeared first on CoinCentral.
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