SharpLink Gaming has announced the initiation of a $1.5 billion stock buyback program aimed at addressing the gap between its ETH treasury and the SBET market capitalization.
Stock Buyback
The company disclosed the acquisition of 930,000 shares for $15 million at an average price of $15.98. This marks the first buyback since the program was authorized in August.
SharpLink's Financial Position
SharpLink currently holds 837,230 ETH, worth approximately $3.6 billion, despite a market cap of only $3.14 billion. The firm's assets are fully staked, and it recently added $176 million in ETH to its reserves.
Market Reaction and Shareholder Response
Despite a 4.6% rise in SBET shares following the announcement, there remains a considerable gap between the stock and its underlying assets, with ETH gaining only 2.2% while SBET has dropped 31%.
SharpLink's share repurchase underscores a challenge faced by crypto companies: as token values increase but stock prices decline, they must navigate this mismatch or risk shareholder dissatisfaction.
