Sharplink Launches $1.5B Buyback as Stock Trades Below NAV

Sharplink launched a $1.5 billion share buyback program after its stock traded below net asset value (NAV). The firm already bought back nearly a million shares at $15.98 each, helping lift its stock 6.5% to $16.69. Sharplink holds 837,230 Ethereum, which is worth $3.59 billion. Meanwhile, Metaplanet, the Japanese hospitality group turned Bitcoin treasury company, will issue 385 million new shares to raise $1.44 billion. Proceeds will fund fresh Bitcoin purchases and expand its trading business. With over 20,000 BTC, Metaplane became a major public holder, though its stock has dropped 39% in the past month despite long-term gains. 

Sharplink Moves to Buy Back $1.5B in Shares

Sharplink, the second-largest Ethereum treasury company, launched a $1.5 billion share buyback program to help support its stock price, which has recently been trading below its net asset value (NAV). The company announced on Tuesday that stock repurchases are immediately accretive to shareholders when shares are undervalued relative to NAV, making this strategy a more disciplined use of capital than issuing new equity. Co-CEO Joseph Chalom explained that the market undervalues Sharplink’s business and said the firm is still focused on capital allocation strategies that directly benefit shareholders.

Announcement from SharpLink

The move was made amid discussions about how digital asset treasury (DAT) companies manage their equity valuations. Just last week, an NYDIG analyst argued that treasury firms should consider stock buybacks when shares fall below NAV, as many companies have seen premiums shrink in recent months. Greg Cipolaro, NYDIG’s global head of research, said that reserving some funds for repurchases could be one of the most straightforward strategies for DATs to counter undervaluation in the market.

Sharplink already began executing its buyback plan with the repurchase of 939,000 common shares at an average price of $15.98. The company said these repurchases should increase NAV per share and reinforce confidence in its long-term strategy. 

SharpLink share price over the past 24 hours (Source: Google Finance)

After the announcement, shares in Sharplink Gaming (SBET) rose 6.51% on Tuesday to close at $16.69, although the stock is still down over 25% in the past month. Management holds firm that shares are very undervalued, and the buyback reflects confidence in its trajectory.

Currently, Sharplink holds 837,230 Ethereum, which is worth approximately $3.59 billion, with nearly all of it staked to earn rewards on the Ethereum network. This staking generates meaningful revenue for the firm. 

The buyback authorization was approved in late August,and it positions Sharplink to act quickly in response to market conditions. While buybacks may provide short-term support, the long-term success of DATs will depend on their ability to manage treasury assets strategically and avoid the pitfalls that were pointed out by skeptics who warn of a potential “death spiral” for companies overly reliant on crypto holdings without sustainable equity strategies.

Meanwhile, Metaplanet announced plans to issue 385 million new shares to raise $1.44 billion in an international offering. Priced at 553 yen ($3.75) per share, the issuance represents a 9.9% discount to Tuesday’s closing price of 614 yen. 

Payment is scheduled for Sept. 16, with delivery on Sept. 17. Unlike a bond issuance, this capital raise involves selling new equity, which increases dilution risk for existing shareholders.

The company said proceeds will be used to purchase more Bitcoin between September and October as part of its strategy to hedge against the weakening Japanese yen. Funds will also go toward expanding its income-generating business, which currently includes trading Bitcoin options. With 20,136 BTC on its balance sheet, Metaplanet is among the largest public Bitcoin holders worldwide.

Top public Bitcoin treasury companies (Source: BitcoinTreasuries.NET)

While Metaplanet is still officially classified as a hotel operator, its pivot toward digital assets began in 2024 as a hedge against inflation, negative interest rates and Japan’s mounting debt burden. Since then, the firm repeatedly raised capital to grow its Bitcoin treasury, though at the expense of shareholder dilution. 

The company’s stock has surged more than 150% over the past year, fueled by enthusiasm for its Bitcoin strategy, but recent performance faltered. Shares traded in Japan have dropped nearly 39% in the past month, even as the Nikkei Index rose 1.7%.

The slowdown is part of the challenges faced by Bitcoin treasury firms. Analysts warn that narrowing premiums between share prices and net asset value could trigger added volatility in the sector. The so-called “flywheel effect” that initially drove investor excitement seems to be weakening, prompting companies like Metaplanet to tap global markets for new funding.