SharpLink Deploying Buyback Program, Says Stock Is Undervalued
Posted on: September 9, 2025, 11:46h.
Last updated on: September 9, 2025, 01:40h.
- Betting affiliate turned Ethereum treasury announced share buyback last month
- Company believes its shares are undervalued
SharpLink Gaming (NASDAQ: SBET), the gaming affiliate company that’s now one of the largest corporate owners of Ethereum, said it’s utilizing its recently announced share repurchase plan as the stock has swooned 31.52% over the past month.
Last month, the Minneapolis-based company announced a $1.5 billion buyback program, adding that if there are periods when its shares trade around or below the net asset value (NAV) of its Ether holdings, those could be ideal times to repurchase stock rather than issuing it to fund new purchases of the second-largest cryptocurrency.
While the Company trades below its NAV, stock repurchases are immediately accretive to stockholders,” according to a statement. “To demonstrate its commitment, the Company began utilizing its share buyback program, starting with the repurchase of approximately 939,000 shares of its common stock at an average price of $15.98.”
That average purchase price is slightly below where SharpLink stock trades at this writing, indicating the company got some value for the repurchased shares. As of September 2, SharpLink’s Ether holdings had grown to 837,230, and its staking rewards surged to 2,318 Ether “since [the] launch of treasury strategy on June 2, 2025.”
Speaking of SharpLink Value …
Companies repurchase shares to signal to investors that management believes in the long-term trajectory of the stock and that it currently offers value.
Following the aforementioned weakness in the stock, SharpLink could support the shares to some degree by being active with its repurchases. That activity could indicate to Sharplink shareholders — a largely retail investor base — that management believes the stock is attractively valued. Indeed, that is the case.
“The Company believes its common stock is significantly undervalued in the market and believes buybacks represent a compelling investment that underscores confidence in its long-term strategy and growth prospects,” according to the press release. “SharpLink today stands in a position of strength — holding approximately $3.6 billion of ETH with no current outstanding debt.”
The company added that because nearly all of its $3.6 billion in Ether is staked, “material revenue” is being accrued.
“The Company expects to repurchase additional shares based on market conditions using cash on hand, cash available from operating activities like staking, or alternative forms of financing,” SharpLink added in the statement.
Rising Concerns About Crypto Treasury Companies
The corporate crypto Treasury concept was pioneered in large part by Michael Saylor’s Strategy (NASDAQ: MSTR), which is the largest corporate owner of Bitcoin. In fact, some investors argue SharpLink is one of the Strategy’s of Ethereum.
There are rising concerns about how fast crypto treasury stocks such as BitMine Immersion Technologies (NASDAQ: BMNR), SharpLink, and Strategy ran up, particularly because some of these firms have limited business models beyond owning digital currency.
Those worries have manifested into recent selling pressure. In addition to SharpLink tumbling 31.52% over the past month, shares of both BitMine, which is another major Ether holder, and Strategy are lower by more than 14% over the same period.
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