Ethereum Treasury Giant SharpLink Launches $1.5B Buyback As Shares Trade Below NAV

SharpLink Gaming, the second-biggest Ethereum treasury firm globally, has started a $1.5 billion share buyback program as its stock trades below its Net Asset Value (NAV).

To kick off the program, SharpLink bought approximately 939,000 shares of its common stock at an average price of $15.98, the company said in a statement.

That helped send SharpLink’s share price up 6% to close Tuesday’s trading session off at $16.69, according to Google Finance. The buying activity continued in after-hours trading, with the company’s share price climbing another 0.48%.

SharpLink Gaming share price

SharpLink Gaming share price (Source: Google Finance)

SharpLink Gaming shares remain down over 2% in the past week and by more than 25% in the past month.

The drop in SharpLink’s NAV means that investors are valuing the company at less than the dollar value of the total ETH it holds on its balance sheet. 

SharpLink Aims To Boost Confidence In Long-Term Strategy

SharpLink currently has around 837.23K ETH tokens valued at approximately $3.24 billion on its balance sheet, according to StrategicETHReserve data. 

The only company that holds more ETH tokens than SharpLink is BitMine Immersion Technologies with its reserves of 2.07 million ETH worth around $7.74 billion.

Although SharpLink has added to its ETH holdings in recent weeks, its stock price continued to drop. That was despite the largest altcoin by market cap hitting a new all-time high (ATH) of $4,953.73 on Aug. 24. 

SharpLink said the buybacks “represent a compelling investment that underscores confidence in its long-term strategy and growth prospects.” 

Along with the 939,000 shares that have already been bought, SharpLink said it will purchase additional shares depending on market conditions using either cash on hand, cash available from operating activities such as staking, or cash from alternative forms of funding.

The company said it is “in a position of strength” and holds “no current outstanding debt.”

“Even more compelling, nearly 100% of the $3.6 billion of ETH is staked, which is generating material revenue for the Company,” it added. 

The company’s co-chief executive officer Joseph Chalom said that “maximizing shareholder value” remains a top priority for the company. 

Treasury Firms Must Set Aside Funds For Buybacks: NYDIG

New York Digital Investment Group (NYDIG) warned in a Sept. 5 report that “a bumpy ride may be ahead” for Digital Asset Treasury (DAT) firms.

“If we were to give one piece of advice to DATs, it’s to save some of the funds raised aside to support shares via buybacks,” it said.

In June, the venture firm Breed also warned that only a few Bitcoin treasury companies will avoid a “death spiral.” 

Related Articles:

  • Jack Ma’s Ant Digital Unit To Tokenize $8.4 Billion In Energy Sector Assets
  • Crypto Exchange Gemini Secures $50 Million Funding From Nasdaq Ahead Of IPO
  • OpenSea Creates An NFT Reserve – Allocates +$1M For Digital Art

Comments

Post a Comment

Popular posts from this blog

Bitcoin Price Prediction: MicroStrategy Boosts BTC Ownership To 1% Of Supply As This Eco-Friendly Alternative Soars Towards $7 Million

Image
The Bitcoin price gained slightly in the last 24 hours to trade at $63,857.08 as of 9:05 a.m. EST as investors tentatively accumulate the crypto. During BTC’s 12% correction over the past 7 days, MicroStrategy bought another 9,245 bitcoins for $623 million in cash between Mar. 11 and Mar. 18, according to a Mar. 19 statement . Following this latest purchase, the company’s total BTC holdings stand at 214,246 BTC, which is more than 1% of the crypto’s total supply of 21 million coins. The Bitcoin Price Bounces Off Of A Key Support 4-hour chart for BTC/USDT (Source: TradingView ) The Bitcoin price rebounded off of the $61,481.65 support level in the last 12 hours. Should bulls continue to push the market leader’s price higher, it may attempt to reclaim a position above $65,847.29 in the coming 48 hours. A 4-hour candle close higher than this significant price point could then give BTC the foundation needed to keep climbing. In this more bullish scenario, th...
Read more

FBI Cautions Hadera Hashgraph Users Against NFT Airdrop Scams

Scams and hacks involving cryptocurrencies and non-fungible token markets are indeed on the rise in 2025. These scams often target unsuspecting individuals, leading to financial losses. In most cases, scammers use various techniques, including impersonation, fake emails, phishing links, and “rug pulls”. In response to the rising scams, the Federal Bureau of Investigation has stepped up to help crypto users from becoming victims of scams. FBI Warn NFT Users Against NFT Airdrop Scams Earlier this week, the Federal Bureau of Investigation issued a cautionary alert about a new scam where cybercriminals exploit non-fungible token airdrops on the Hedera Hashgraph network to steal crypto from cryptocurrency wallets. Hedera Hashgraph is a public, distributed ledger technology platform that uses a unique data structure called a directed acyclic graph to achieve high-performance, secure, and fair consensus. Based on the FBI announcement, cyber criminals have been defrauding cryptoc...
Read more

Solana & Bitcoin Connection Drives SOL to $130 as Halving Nears

Image
The Solana and Bitcoin (BTC) connection has driven SOL to a price below $130, but there is more to the story, with the Bitcoin Having Event just 500 blocks away. Indeed, the Halving is slated to take place in just four days, with the closing of the week seeing it officially take place. For much of last week, Solana ’s connection to Bitcoin has affected its price. As BTC has dropped in value, so too has SOL. That has led to a more than 34% drop in the last 30 days, according to CoinMarketCap. Yet, with many expecting the upcoming supply cut to impact prices, Solana could be one of the most affected. JUST IN: 500 blocks remain until #Bitcoin halving. pic.twitter.com/y5ATHAIrrj — Watcher.Guru (@WatcherGuru) April 16, 2024 Also Read: Solana DEX Volume Back to $1B After Network Update Solana-Bitcoin Connection Could Mean a Turnaround Soon For the last month, Solana has seen some highs and some lows. Its network had been the main player of March’s Me...
Read more