What You Should Know
- SharpLink Gaming has sanctioned a stock repurchase initiative of up to $1.5 billion.
- The firm, located in Minneapolis, currently holds 740,760 ETH, equivalent to $3.19 billion at current valuations.
Ether treasury firm SharpLink Gaming has authorized a stock buyback program of up to $1.5 billion. SharpLink, which is led by Ethereum co-founder and ConsenSys CEO Joseph Lubin, indicated it would carry out the repurchases at times and amounts dependent on market conditions and share price in an announcement made 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 commented in the announcement.
Translation: If our stock prices fall to or below the value of our ETH assets, issuing new equity could reduce the value of current shares.
In this situation, the prudent action may be to repurchase our common stock. The Minneapolis-based company holds 740,760 ETH, valued at $3.19 billion currently. Various companies have unveiled ether treasury strategies recently to leverage the profits from earning passive yields through ETH staking.
Following the announcement of the buyback, SharpLink shares saw an increase of over 10%, trading at $19.85, as Bitcoin prices surged after remarks from Fed Chair Jerome Powell suggested a September rate cut could be on the horizon.
Read more: Powell Puts September Rate Cut in Play; Bitcoin Pushes Higher
