Sharplink launches $1.5 billion share buyback…"Maximizing shareholder value"

Sharplink, the second-largest holder of Ethereum (ETH) strategic reserves, has launched a $1.5 billion share buyback program to support its stock price. According to Cointelegraph on the 10th (local time), Sharplink said its shares are trading below its net asset value (NAV) and that the repurchases will directly contribute to enhancing shareholder value.

Joseph Chalom, Sharplink co-CEO, said, "The market is currently undervaluing our company," and added, "Rather than issuing equity below NAV, we will allocate capital efficiently and focus on boosting shareholder value through buybacks." The move came days after NYDIG advised that "digital asset treasury (DAT) companies should consider buybacks if they trade below NAV."

In its initial purchase, Sharplink bought 939,000 common shares at an average price of $15.98 per share. The stock closed at $16.69 the next day, up 6.59% in one day, but is still down more than 25% over the past 30 days. The company said, "The stock is significantly undervalued, and this repurchase is an attractive investment that demonstrates confidence in our long-term strategy."

Sharplink holds about 837,230 Ether, worth approximately $3.59 billion. Most of it is staked and is said to generate substantial returns from blockchain network rewards. The company approved the buyback program on August 22 and has been preparing to respond quickly as market conditions warrant.

Experts say the move could have implications across digital asset treasury companies. Greg Cipolaro, head of global research at NYDIG, emphasized, "If DAT companies trade below NAV, the simplest solution is buybacks," and said, "They should set aside part of their raised funds as resources for purchases."