Ethereum Treasury’s SharpLink to Repurchase as Much as $1.5 Billion in Shares

SharpLink Gaming can buy back up to $1.5 billion of its common stock through a newly approved program, as detailed in a blog post released on Friday.

With a market capitalization of $3.5 billion, this repurchase program could reflect nearly half of the company’s total value. Co-CEO Joseph Chalom explained it as a resource for situations where the company’s shares are traded for less than their Ethereum value.

“In such cases, repurchasing our common stock might be beneficial,” he stated. “This program allows us to respond quickly if such conditions arise.”

On Friday, SharpLink’s shares jumped more than 15% to $20.87 as crypto-focused stocks experienced a general upturn, according to Yahoo Finance. This surge followed positive sentiment regarding potential interest rate cuts after comments made by U.S. central bank Chair Jerome Powell. Notably, SharpLink’s stock price has fallen 24% in the past month, despite Ethereum gaining value.

Ethereum recently traded at $4,813, increasing over 13% within 24 hours, per crypto data provider CoinGecko. Earlier on Friday, ETH reached a new peak of $4,879 before pulling back. The cryptocurrency’s price has surged around 35% over the last month.

Like many crypto treasury firms, SharpLink aims to enhance shareholder value by increasing the amount of Ethereum held per fully diluted share. When SharpLink stock trades at a premium compared to its crypto holdings, it can issue additional shares to amplify that ratio.

The strategy, which was previously used by MicroStrategy, has been in operation for years, but its premium has been much higher and longer-lasting. On Friday, SharpLink reported a so-called mNAV of 1.08, indicating a slight premium, according to Ethereum Strategic Reserve.

As of Friday, SharpLink held 740,000 ETH valued at over $3.5 billion. This corporate hoard was approximately half that of BitMine Immersion Technologies, which owned 1.5 million ETH worth around $7.3 billion.

In its press release, SharpLink emphasized that the timing and volume of share repurchases will be contingent on market conditions. The company is not bound to repurchase any shares and can halt this initiative at any moment.