SharpLink to buy back $1.5 billion in stock as Ethereum price climbs

Ethereum-focused SharpLink’s stock climbed more than 15% to trade above $20 after the company’s board approved a $1.5 billion stock repurchase program.

In its Aug. 22 press statement, SharpLink explained that the authorization allows for buybacks through multiple channels, including open-market purchases and privately negotiated deals.

The company emphasized that the scale of repurchases will depend on factors such as trading conditions, liquidity, and market price.

Meanwhile, the firm stressed that the initiative does not commit it to a fixed number of shares, and the board reserves the right to pause or end the program if circumstances change.

Why does SharpLink want a stock buyback program

SharpLink Co-CEO Joseph Chalom said the move is designed to prevent dilution and strengthen the firm’s Ethereum-per-share value.

According to him, issuing additional equity would weaken ETH concentration if the company trades at or below its ETH holdings’ net asset value (NAV). In that scenario, buying back shares is considered the more beneficial path.

He added that every repurchase would lift the amount of ETH backing each share, compounding long-term benefits for investors.

Overall, the firm described its broader mission as accumulating and staking ETH with transparency and institutional discipline. So, by pairing buybacks with its Ethereum treasury strategy, SharpLink said it aims to reinforce shareholder confidence while maintaining its focus on ETH growth per share.

Ethereum rally impacts SharpLink shares

While the buyback plan is significant, SharpLink’s recent surge was largely supported by ETH’s price rally after the US Federal Reserve Chair Jerome Powell’s dovish comments about the US economy.

Data from CryptoSlate shows ETH has climbed more than 13% in the last 24 hours, reaching $4,876 as of press time.

This rally was part of a broader market uptrend, which saw Bitcoin and other top digital assets record significant gains, pushing the total crypto market above $4 trillion earlier today.

According to Strategic ETH Reserve data, SharpLink is the second-largest corporate holder of Ethereum. The Joseph Lubin-led firm holds 740,800 ETH, worth $3.59 billion.

The firm is sitting on an unrealized profit of more than $1 billion and earned more than 1300 ETH from staking its entire holdings.

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