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Investing.com -- SharpLink Gaming, Inc. (NASDAQ:SBET) stock rose 5% on Friday after the company announced its Board of Directors has authorized a stock repurchase program of up to $1.5 billion of the company’s common stock.
The significant buyback program is designed to provide enhanced market support and optimize capital allocation, according to the company. SharpLink, which describes itself as one of the world’s largest corporate holders of Ether (ETH), indicated the repurchase plan would allow it to act strategically if its stock trades at or below the net asset value of its ETH holdings.
"At SharpLink, we remain committed to a disciplined capital markets strategy," said Joseph Chalom, Co-Chief Executive Officer of SharpLink. "Should there exist periods where our stock trades at or below the net asset value (’NAV’) of our ETH holdings, it would be dilutive on an ETH per share basis to issue new equity through our capital raising efforts. In this scenario, the accretive course of action may be to repurchase our common stock."
The company stated that repurchases may be made through open market purchases, privately negotiated transactions, or other means permitted under applicable securities laws. The timing and amount of repurchases will depend on market conditions, share price, and trading volume.
SharpLink noted it is not obligated to repurchase any specific number of shares, and the program may be suspended or discontinued at any time.
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