SharpLink Gaming, one of the largest Ethereum treasury firms, announced the launch of a $1.5 billion share buyback program.
Start of the Share Buyback Program
SharpLink Gaming has already purchased approximately 939,000 shares of its common stock at an average price of $15.98. As a result of this activity, the company's stock price increased by 6%, closing at $16.69 at the end of Tuesday's trading session. The price continued to rise by 0.48% after hours.
SharpLink's Long-Term Strategy
According to reports, SharpLink holds around 837.23K ETH valued at approximately $3.24 billion. Despite recent increases in its ETH holdings, its stock price continues to decline. SharpLink notes that the buybacks are part of a strategy aimed at enhancing confidence in its long-term prospects and intends to continue purchasing shares based on market conditions.
NYDIG's Recommendations for Treasury Firms
The New York Digital Investment Group (NYDIG) warned in a report that Digital Asset Treasury (DAT) firms may face challenges. They recommend setting aside a portion of raised funds to support shares via buybacks, considering the market's instability.
SharpLink Gaming's buyback program underscores its confidence in long-term prospects despite the current stock downturn. In a changing market, having a strategy to maintain stock value is crucial.
