SharpLink Gaming, Inc. (Nasdaq: SBET) announced on Friday that its board has authorized a stock repurchase program of up to $1.5 billion, giving the company flexibility to buy back shares in the open market or through private deals.
The Minneapolis-based company, one of the largest corporate holders of Ether (ETH), said the program is not bound to a fixed schedule or minimum repurchase amount and can be suspended or discontinued at any time. The company did not specify a timeline for the buybacks.
SharpLink Gaming Strategy Linked to ETH Holdings
SharpLink’s decision comes as it weighs the relationship between its share price and its significant ETH reserves. Co-Chief Executive Officer Joseph Chalom said repurchasing stock may be an appropriate response if shares trade at or below the net asset value of the company’s cryptocurrency holdings.
Chalom noted that issuing new equity under those conditions could dilute ETH-per-share value, making buybacks a more favourable option in certain market environments.
Market Conditions Will Drive Repurchases
The company said any repurchases will depend on several factors, including market conditions, trading volume, share price and other considerations. SharpLink emphasized that it is not obligated to repurchase a set number of shares.
The move reflects growing attention among companies holding large cryptocurrency reserves to align their equity strategies with the performance of their digital assets. SharpLink has positioned itself as an industry advocate for Ethereum adoption, and its financial strategies have increasingly tied back to the performance of ETH.
Flexible Capital Approach
The company said the buyback program is intended to provide it with flexibility in how it manages capital, but stressed that it does not guarantee any specific level of activity. Repurchases, if undertaken, may occur in the open market, through privately negotiated transactions or by other methods in line with securities laws.
The authorization marks one of the larger buyback programs announced this year by a publicly traded company with heavy exposure to cryptocurrency reserves.
