SBET

Ether treasury firm SharpLink Gaming (SBET) has authorized a stock purchase program of up to $1.5 billion.

SharpLink, which is helmed by Ethereum co-founder and ConsenSys CEO Joseph Lubin, said it will make the repurchases at a time and in amounts that depend on market conditions and share price in an announcement on Friday.

“Should there exist periods where our stock trades at or below the net asset value of our ETH holdings, it would be dilutive on an ETH per share basis to issue new equity through our capital raising efforts,” co-CEO Joseph Chalom said in the announcement.

“In this scenario, the accretive course of action may be to repurchase our common stock.”

The Minneapolis-based company holds 740,760 ETH, worth $3.19 billion at current prices. Numerous companies have unveiled ether treasury strategies in recent months to capture the upside from generating passive yield through ETH staking.

SharpLink shares traded over 10% higher at $19.85 on Friday morning following the buyback program announcement and as bitcoin surged after Fed Chair Jerome Powell’s comments opened the door to a September rate cut.

Read more: Powell Puts September Rate Cut in Play; Bitcoin Pushes Higher

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SharpLink Gaming (SBET), the public firm pivoting to a crypto treasury strategy focused on Ethereum, revealed on Friday it acquired 176,271 ether

for nearly $463 million.

The purchase makes the firm the largest ETH holder among publicly traded companies, SharpLink said in a press release.

The company tapped its $1 billion at-the-market (ATM) common stock share facility for $79 million to help fund the ETH acquisition.

The ETH purchase announcement came on the heels of a Thursday regulatory filing that potentially enabled investors in the firm’s private placement round to sell shares, sending stock prices down 70% after market hours. Some speculated that the firm might have leaned more heavily into the ATM to announce a bigger larger crypto purchase. Shares remain lower by 66% in Friday action.

SharpLink in one of the growing roster of public companies that recently pivoted to add cryptocurrencies to their balance sheets. It raised $450 million earlier this month through a private round from a wide range of investors, including ConsenSys, Galaxy, and Pantera Capital, to buy ETH. Ethereum co-founder and ConsenSys CEO Joseph Lubin also joined the firm as board chairman.

Shares exploded 4,300% higher in a bit more than a week following the firm’s crypto strategy in May, but have given back more than 90% of the rally this month.
After the massive price swings and today’s decline, shares still trade around 500% higher than before the treasury pivot.

Read more: Ethereum Treasury Firm SharpLink Gaming Plunges 70% – But There May Be a Twist

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SharpLink (SBET) to Commence $1.5B Stock Buyback Program

SharpLink (SBET) Buys $463M in ETH, Stock Down 66%