- SharpLink (SBET) launches $1.5B buyback, scooping nearly $15M in shares below NAV.
- The firm holds 837,000 ETH ($3.6B), with almost all staked, generating up to $151M annually.
- Management calls shares undervalued, prioritizing repurchases over equity issuance.
SharpLink Gaming (SBET), led by Joseph Lubin, has kicked off its massive $1.5 billion share repurchase program with a bold move—buying back nearly 939,000 shares at an average of $15.98. That’s a $15 million play already in motion as of Sept. 9, and the stock popped over 4% right after.
Why the Buyback Matters Now
The company says the repurchases are accretive because SBET shares are trading below their net asset value (NAV). In simple terms, NAV is just the company’s balance sheet—Ethereum holdings and cash, minus debt—divided across shares. When shares fall under that number, the market is basically undervaluing the business. By buying them back, SharpLink boosts the ETH and cash value behind every remaining share.
And that’s no small backing. The firm recently revealed its Ethereum stack has climbed to about 837,000 ETH—worth an estimated $3.6 billion. Nearly all of it is staked, generating steady yield.
ETH Staking Powering Future Gains
With its entire ETH treasury staked, SharpLink is raking in between 15,700 and 35,200 ETH annually, depending on validator yields that currently range from 1.87% to 4.20%. At around $4,300 per ETH, that’s $67 million to $151 million flowing in every year before costs.
It’s no wonder co-CEO Joseph Chalom stressed that “the market currently undervalues our business.” Instead of raising cash by issuing equity at cheap prices, the company is betting on itself—leaning on disciplined capital allocation and repurchases to drive long-term value.
What Comes Next for SBET Holders
Future buybacks will depend on market conditions, but the firm plans to fund them with a mix of cash, staking rewards, and potentially other financing. Importantly, SharpLink reiterated it hasn’t tapped its ATM facility while shares trade below NAV, but left the door open to do so if conditions become accretive.
For investors, the combination of massive Ethereum holdings, strong staking rewards, and aggressive buybacks paints a picture of a company doubling down on itself at what it believes is a discount. If ETH continues climbing, SBET’s NAV could grow even stronger—and shareholders might be holding more value than the market currently recognizes.
