Sharplink Gaming (SBET), a NASDAQ-registered ether (ETH) financing company led by Ethereum co-founder Joe Lubin, said it regained $15 million worth of shares on Tuesday, with the stock's market capitalization below $3.6 billion in ETH shares.
According to a press release, the Minneapolis-based company has repurchased around 939,000 shares at an average price of $15.98 as part of its share buyback program.
“The company believes that common stock is significantly undervalued in the market, and buybacks represent a compelling investment that emphasizes long-term strategy and confidence in growth prospects,” Sharplink said.
Along with this news, stock prices rose 3.6% in pre-market trading on Tuesday, with ETH prices rising 1% since the end of yesterday.
Sharplink holds around $3.6 billion worth of ETH, with almost all of its holdings providing piling and revenue streams, the company said. According to Sharplink Dashboard, the stock is currently trading at 0.87 Net Asset Value (MNAV), which limits its ability to raise funds by selling shares for ETH purchases as part of its strategy.
Executives said the company has not tapped its market facilities to sell shares while trading below its net asset value, and that such a move would dilute the company's key indicator, ETH per share.
Digital asset financing companies have plummeted sharply as the crypto market has cooled over the past few weeks. Rival Digital Assets Treasury Bitmine (BMNR) holds around $9 billion in ETH, falling below the 1 MNAV threshold.
BMNR and SBET have fallen by about 60% to 70% respectively since their highs in July.
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