SharpLink Gaming approves $1.5B buyback backed by $3.2B in ETH

Source Cryptopolitan

SharpLink Gaming, Inc., one of the largest corporate holders of Ether and a renowned industry ETH evangelist, has announced that its Board of Directors has authorized a stock repurchase program of up to $1.5 billion of the company’s common stock.

According to Sharplink, buybacks will be more value-accretive when the share price trades below its ETH holdings’ net asset value (NAV). According to on-chain data, the company holds a total of 740.8k ETH, with a NAV of 1.06.

A stock repurchase (or a buyback) is when a company uses its cash to buy back its shares from the stock market. 

Joseph Chalom, Co-Chief Executive Officer of SharpLink, said:

“Should there exist periods where our stock trades at or below the net asset value (“NAV”) of our ETH holdings, it would be dilutive on an ETH per share basis to issue new equity through our capital raising efforts. In this scenario, the accretive course of action may be to repurchase our common stock.”

The repurchase procedure

The company says that the stock buyback program will provide support to the market, optimize capital allocation, and reinforce its long-term commitment to driving stockholder value.

The company revealed that repurchases may be made through open market purchases, privately negotiated transactions, or other means permitted under applicable securities laws. Repurchase timing and amount will depend on market conditions, share price, trading volume, and other factors. 

This means it is not obligated to repurchase any specific number of shares, and the program may be suspended or discontinued at any time.

Stock buyback program to support ETH

SharpLink’s capital strategy is deeply tied to its Ethereum reserves. The company is one of the few publicly traded firms that holds ETH as its primary treasury reserve asset. Therefore, the program shows confidence in the basics of the company and in Ethereum as a main digital asset.

By using an ETH reserve approach along with one of the most ambitious stock buyback plans in the gaming industry, SharpLink wants to show that it is dedicated to creating long-term value. The program shows confidence in the basics of the company and in Ethereum as a main digital asset. 

Its choice to spend up to $1.5 billion on stock repurchases will help its stock in the short term. In addition, it shows that it wants to match shareholder returns with the growth of Ethereum as a global financial infrastructure.

Although buybacks don’t buy ETH, there is a more indirect effect on the coin. It will strengthen ETH’s institutional adoption narrative, but doesn’t push ETH price the same way. It can also attract new customers who want ETH exposure through stocks.

Meanwhile, the effects are already reflecting on both ETH and SBET shares. ETH is up 9% currently trading at $4,636. On the other hand, SBET shares have also surged by 10. 

Sharplinks’ revenue decline in Q2

SharpLink Gaming is currently valued at $2.51 billion with shares trading at $20.01. Data shows that the company maintains strong liquidity with a current ratio of 6.83, though its overall financial health score indicates potential risks. The stock has also shown remarkable momentum with a 237% gain over the past six months.

However, the company reported a major decline in revenue in the second quarter of 2025, from $1,000,000 a year earlier to $700,000. Earlier reports by Cryptopolitan revealed that the business also had a big net loss of $103.4 million, which was mostly due to non-cash accounting impairments and stock-based pay.  

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