Free Market Opinion
Ether Treasury Company SharpLink Gaming Buys Back $15M in ‘Undervalued’ Shares
The repurchase happened as the firm’s stock price fell below the net asset value of its underlying ether holdings.
SharpLink Gaming (SBET), a Nasdaq-listed ether (ETH) treasury firm helmed by Ethereum co-founder Joe Lubin, said on Tuesday it has bough back $15 million worth of shares, noting the stock’s market cap is below the company’s $3.6 billion in ETH holdings.
The Minneapolis-based firm repurchased about 939,000 shares at an average price of $15.98 as part of its share buyback program, according to a press release.
“The Company believes its common stock is significantly undervalued in the market and believes buybacks represent a compelling investment that underscores confidence in its long-term strategy and growth prospects,” said SharpLink.
The stock was up 3.6% in pre-market trading on Tuesday alongside this news and more than a 1% rise in the price of ETH since yesterday’s close.
SharpLink holds about $3.6 billion worth of ETH with nearly all of its holdings staked, providing an income stream, the firm said. The stock currently trades at a 0.87 multiple of net asset value (mNAV), according to SharpLink dashboard, limiting its ability to raise funds by selling shares for ETH purchases as part of its strategy.
Executives said that the firm has not tapped its at-the-market facility to sell shares while trading below net asset value, noting such moves would dilute ETH holdings per share, a key metric for the firm.
Digital asset treasury firms plunged sharply over the past weeks as crypto markets cooled off. Rival digital asset treasury firm BitMine (BMNR), which holds nearly $9 billion in ETH, also fell below the 1 mNAV threshold.
BMNR and SBET have each decline about 60%-70% since their July highs.
By Krisztian Sandor, AI Boost|Edited by Stephen Alpher
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Stock market today: Dow, S&P 500, Nasdaq slip as tariff concerns mount ahead of key inflation data
US stocks pulled back slightly on Monday as Wall Street braced for a turbulent week, with renewed trade tensions injecting uncertainty ahead of a key inflation report and the first wave of second-quarter earnings.
The S&P 500 (^GSPC) was off about 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) was roughly flat. The Dow Jones Industrial Average (^DJI) fell about 0.2%.
Investors are showing little appetite for risk after President Trump said Saturday that the US will impose 30% tariffs on goods from the EU and Mexico from Aug. 1. The increased pressure on key US trading partners is testing the market’s previous resilience in the face of escalating tariff tensions. Faith in the idea that Trump will back off from threatened hikes helped lift stocks to all-time highs last week.
Silver (SI=F) prices rose to the highest levels in nearly 14 years, as shelter-seeking investors looked for alternatives to gold (GC=F), near a record amid tighter physical supply. Elsewhere, bitcoin (BTC-USD) surged to above $120,000 for the first time, continuing to climb to fresh record highs amid a broader crypto rally.
Officials from the EU and Mexico are pushing to continue negotiations with the US in hopes of securing a lower rate via a new deal. The hiked tariffs as they stand are seen as likely to remake global trade relations and add to existing inflationary pressures.
That adds uncertainty ahead of consumer inflation data scheduled for release this week. Investors are looking to the June CPI report for signs of how earlier rounds of tariffs are impacting prices across the US economy. The reading will feed into expectations for the Fed’s decision on interest rates due in just over two weeks.
Earnings season kicks into swing this week, with all the major US banks due to report results starting on Tuesday. Investors are showing interest in IPO and M&A markets, while Wells Fargo (WFC) reports after being freed from decade of stringent regulatory restrictions.
Netflix (NFLX) results on Thursday will get Big Tech earnings rolling, with ASML (ASML) and Taiwan Semiconductor Manufacturing (TSM) also set to shed light on the AI chip sector.
BY: Rian Howlett, Karen Friar and Josh Schafer