SharpLink Gaming’s $15M Buyback: Undervalued or Just Desperate? 🤔

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Markets

What to know:

  • SharpLink Gaming thinks it’s a brilliant move to repurchase $15 million worth of shares, as they consider them undervalued compared to their precious stash of ETH.
  • Pre-market excitement? The stock climbed by a grand 3.7%, but still lingers 60% below its July highs. Go figure.
  • Oh, and the digital treasury firm world is in a bit of a slump-stocks falling below net asset values, leaving firms like SharpLink struggling to raise funds. Who could have seen that coming?

Ah, SharpLink Gaming (SBET), that Nasdaq-listed ether (ETH) treasury firm led by the ever-determined Ethereum co-founder, Joe Lubin, made waves on Tuesday by announcing it repurchased $15 million worth of shares. The reason? Well, apparently, they think the stock is worth less than their $3.6 billion worth of ETH. Quite the dilemma, isn’t it? 😂

Located in the fine city of Minneapolis, SharpLink decided to buy back about 939,000 shares at an average price of $15.98. A part of their “buyback program,” because who doesn’t love a good program?

“We believe our common stock is severely undervalued, and we think buybacks are a compelling investment. It shows our unwavering confidence in our long-term growth and strategy,” said SharpLink, with the same confidence that an actor delivers lines they’ve rehearsed a hundred times. 🎭

News broke, and the stock popped up 3.6% in pre-market trading on Tuesday, right along with the 1% rise in the price of ETH. A small victory, if you will, in this cold, cold market.

SharpLink, holding an impressive $3.6 billion in ETH (most of it staked, of course), claims to be swimming in income from its holdings. However, with a stock currently at a 0.87 multiple of net asset value (mNAV), the firm can’t sell shares to buy more ETH. It’s like wanting to buy a candy bar but realizing you’ve spent all your pocket money on vending machine snacks. 😅

Despite all this, SharpLink hasn’t tapped into its at-the-market share selling facility, fearing that it would dilute its precious ETH holdings per share. Yes, let’s not dilute the golden goose. 🐣

In the broader landscape, digital asset treasury firms have been on a bumpy ride lately. The crypto market’s cool down has left these firms in a bit of a tailspin. BitMine (BMNR), another firm of note, which holds a hefty $9 billion in ETH, also found its stock below the 1 mNAV threshold. It seems everyone’s taking a hit in this crypto winter.

Both BMNR and SBET have dropped about 60% to 70% since their glorious July highs. What a difference a few months make in the world of digital assets. 🍂

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2025-09-09 17:30