Ethereum treasury SharpLink initiates $1.5 billion share repurchase program, says below-NAV buying is ‘immediately accretive'
Quick Take
- SharpLink repurchased 939,000 SBET shares at an $15.98 average as it begins deploying its $1.5 billion buyback plan.
- The company cites about $3.6 billion of ETH in its treasury, with nearly all staked and no debt, as support for ongoing repurchases while shares trade below NAV.
Joseph Lubin’s SharpLink Gaming (ticker SBET) has begun using its newly authorized $1.5 billion share repurchase program, buying back about 939,000 shares of SBET at an average $15.98. This implies a $15 million spend as of Sept. 9.
According to the company's statement, repurchases are immediately accretive while shares trade below net asset value. SBET shares rose over 4%, The Block's stock price page shows.
NAV is the per-share value of SharpLink's balance sheet, primarily its ETH holdings and cash, minus liabilities, divided by shares outstanding. If SBET trades below NAV, the market is valuing the stock for less than the company’s underlying assets. It suggests that repurchasing shares is typically accretive, since it increases ETH and cash per share for remaining holders.
Notably, the price of ether, staking income, buybacks, and any new financing will impact SharpLink's NAV.
"We believe the market currently undervalues our business," said Joseph Chalom, SharpLink’s co-CEO. "Rather than issue equity while trading below NAV, we are focused on disciplined capital allocation – including share repurchases – to increase stockholder value."
The move follows an August authorization of the $1.5 billion buyback and recent disclosures that its ETH stack has grown to about 837,000 ETH, worth an estimated $3.6 billion. SharpLink’s latest disclosure said the firm has no debt, with nearly 100% of its ether treasury ETH staked and generating revenue.
Staking the full balance at current market-rate yields implies roughly 15,700–35,200 ETH in annual rewards using an APY range of 1.87%–4.20%. With ether trading around $4,300 on Tuesday, that equates to about $67 million–$151 million per year before validator costs, pool fees, MEV/execution-layer variance, and any downtime or slashing risks.
Additional buybacks will be considered based on market conditions and funded with cash on hand, staking income, or other financing, the company added. SharpLink also reiterated that it has not used its ATM facility while trading below NAV, but may do so if accretive.
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