- Buybacks kick in when shares trade at or below NAV, linked directly to ETH reserves.
- Co-CEO Joseph Chalom says the goal is to protect investors from dilution and boost per-share ETH exposure.
- NAV reflects treasury ETH plus cash/assets minus liabilities, divided across all shares.
SharpLink has rolled out a new buyback program that lets the company repurchase its own shares whenever they’re trading at or below net asset value (NAV)—a figure directly tied to the size of its Ethereum reserves. The move is catching attention because it puts buybacks front and center instead of issuing new shares, which often waters down value for existing holders.
Protecting Shareholders From Dilution
Co-CEO Joseph Chalom, a former BlackRock executive, said the program is about keeping things fair for investors. Issuing equity when shares trade under NAV, he explained, would chip away at the “ether per share” ratio and weaken exposure to ETH. Buybacks, on the other hand, can flip that around—each share left in circulation effectively gets a little more ETH backing it.
What NAV Really Means Here
SharpLink’s NAV is basically the company’s ETH math. It adds up the value of all Ethereum in treasury, plus cash and other assets, then subtracts liabilities, and divides by the number of shares out there. Because the firm operates as an Ethereum-denominated treasury vehicle, NAV doesn’t just shift with crypto’s wild price swings but also with how many ETH tokens they’re actually holding.
How the Buybacks Work
The company says repurchases could happen in a few ways—open-market buying, private deals, or other legally permitted methods—depending on market conditions. It’s a flexible setup, but the idea is to keep capital management disciplined while still being tied tightly to Ethereum’s price trajectory.
Chalom framed it simply: rather than diluting, they’d rather double down when the market undervalues their ETH-backed position.
