SharpLink Gaming Soars on $1.5 Billion Repurchase Plan

• Gambling News
• 22 August 2025

After the betting affiliate turned Ethereum holder announced it would buy back up to $1.5 billion of its common stock, SharpLink Gaming's (NASDAQ: SBET) stock shot up Friday.

Co-CEO Joseph Chalom stated in a statement that it would not be wise to issue new stock to finance purchases of Ethereum if there are times when SharpLink shares trade at or below the net asset value of the company's sizable Ethereum stake, but that might be a good time to buy back stock.

"In this scenario, the accretive course of action may be to repurchase our common stock,” he said in the press release. “This program provides us with the flexibility to act quickly and decisively if those conditions present themselves.”

A $1.5 billion repurchase program represents over half of SharpLinik's market capitalization, which is $3.05 billion as of this writing.  Following the announcement of the repurchase program, shares of SharpLink are up more than 12% on volume in late trading, which is much greater than the daily average.

The Significance of Repurchasing SharpLink

SharpLink may retire some of the shares it uses to finance Ethereum purchases as a result of its substantial buyback program, which makes it significant.  By using its stock to finance Ether acquisitions, the business became one of the largest corporate owners of the second-largest digital currency.

For instance, on Tuesday, SharpLink reported that it had raised $537 million for the week ending August 15th, of which $390 million came from a direct equity offering to a select group of professional investors.  This increased the company's Ether position to 740,760 and its Ether concentration to 3.87, which is almost twice as much as it was two months ago.

SharpLink Gaming is using its securities to finance Ether purchases, much like Michael Saylor's Strategy (NASDAQ: MSTR), which is currently the biggest corporate owner of Bitcoin worldwide.  For whatever cause, issuing additional shares dilutes existing investors.  This explains why SharpLink's stock price jumped when the repurchase plan was announced.

“The stock buyback program is designed to provide enhanced support to the market, optimize capital allocation and reinforce SharpLink’s long-term commitment to driving sustainable stockholder value,” according to the press release.

Can I Get SharpLink for Less?

Businesses with sizable treasury commitments to cryptocurrencies are frequently viewed as stand-ins for those virtual assets.  Because markets utilize the shares to price in the potential for future gains by the held cryptocurrency, those stocks frequently trade at premiums to the net asset values of those holdings.

In other words, stocks like SharpLink don't typically trade at a discount to the digital assets they own, but that is the case right now.  Although its market capitalization is $3.05 billion, as previously mentioned, the value of its Ether holdings exceeds $3.5 billion.

Furthermore, since the corporate treasury plan was revealed on June 2, the company's staking rewards have increased to around 1,400 Ether.