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MINNEAPOLIS - SharpLink Gaming, Inc. (Nasdaq:SBET) has initiated its share buyback program, repurchasing approximately 939,000 shares of common stock at an average price of $15.98, the company announced Tuesday. The stock, currently trading at $15.67, has shown significant volatility with a 52-week range of $2.26 to $124.12, according to InvestingPro data.
The Ethereum-focused company, which holds approximately $3.6 billion in Ether (ETH) with no outstanding debt, stated it believes its stock is "significantly undervalued" in the market. Nearly 100% of the company’s ETH holdings are staked, generating revenue for the firm. With a market capitalization of $2.76 billion and a high Price/Book ratio of 6.11x, InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value.
SharpLink plans to continue repurchasing additional shares based on market conditions using cash on hand, cash from operating activities such as staking, or alternative financing methods. The company also confirmed it has not utilized its At-the-Market (ATM) facility while trading below Net Asset Value (NAV), as this would dilute ETH per share.
"Maximizing stockholder value remains our top priority as we execute on our vision of being the most trusted ETH treasury company in the market," said Joseph Chalom, Co-Chief Executive Officer of SharpLink. "With a robust balance sheet, zero debt and a powerful ETH treasury generating income, we are in a position of strength."
SharpLink describes itself as one of the world’s largest publicly traded companies to adopt ETH as its primary treasury reserve asset. The company maintains a dashboard displaying information about its ETH treasury, including market data, ETH concentration, and basic metrics related to its holdings.
The information in this article is based on a company press release statement. For deeper insights into SharpLink Gaming’s financials and future prospects, including 18 additional ProTips and comprehensive valuation metrics, visit InvestingPro, where you’ll find detailed research reports and expert analysis.
In other recent news, SharpLink Gaming, Inc. has made several notable announcements. The company revealed that its Board of Directors authorized a stock repurchase program valued at up to $1.5 billion. This buyback initiative is intended to provide market support and optimize capital allocation, especially when the stock trades at or below the net asset value of its Ether holdings. Additionally, SharpLink Gaming increased its Ether holdings by purchasing 143,593 ETH, bringing its total to 740,760 ETH. This purchase was made at an average price of $4,648 per ETH, supported by funds raised through an At-the-Market facility and a registered direct offering. Furthermore, the board approved an Inducement Award Plan, reserving 3,000,000 shares of common stock for issuance, which will be managed by the board’s compensation committee. This plan, similar to the company’s existing equity incentive plan, will not include incentive stock options. These developments highlight SharpLink Gaming’s strategic moves in capital management and employee incentives.
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