Sharplink Gaming has announced a $1.5 billion share buyback program to address its stock trading below its net asset value (NAV).
It aims to enhance shareholder value and capitalize on what the company sees as an undervaluation in the market.
Joseph Chalom, co-CEO of Sharplink said, “We believe the market currently undervalues our business.”
“Stock repurchases are immediately accretive to stockholders and reflect our disciplined approach to capital allocation.”
The buyback program began with the repurchase of 939,000 common shares at an average price of $15.98.
Sharplink’s stock (SBET) surged 6.59% closing at $16.69, according to Google Finance.
Despite this uptick, the stock has declined 25.29% over the past 30 days.
This further reinforces the company’s view that its shares are significantly undervalued.
Sharplink holds 837,230 Ether, valued at approximately $3.59 billion.
Nearly all of its ETH staked to generate revenue through blockchain rewards.
The company emphasized that the buybacks are a strategic investment to increase NAV per share and support long-term growth.
The decision follows recent industry insights.
The buyback program, authorized on August 22, allows Sharplink to act swiftly when market conditions are favorable.
Right now the industry is experiencing broader market challenges.
Some analysts warn that crypto treasury companies face risks if their stock premiums narrow.
In this context, Sharplink’s proactive strategy aims to counter these pressures and strengthen investor confidence.
