SharpLing Gaming, one of the largest Ether corporate treasuries, authorized a $1.5 billion stock buyback program.
In a Friday announcement, SharpLink Gaming said it authorized the repurchase of $1.5 billion worth of shares as part of its “disciplined capital markets strategy.” No repurchases have been made so far.
The firm’s Co-CEO Joseph Chalom said the firm will consider buybacks when its stock trades at or below the net asset value of its Ether (ETH) holdings. “This program provides us with the flexibility to act quickly and decisively if those conditions present themselves,” Chalom added.
SharpLink’s strategy focuses on accumulating and staking Ether to boost its ETH-per-share metric. Repurchasing shares below net asset value would increase that ratio, the company said.
SharpLink Gaming is all-in on Ether
The betting platform transitioned to an Ethereum-based corporate treasury strategy and nominated Ethereum co-founder Joseph Lubin as chairman in late May. At the time, the company said, “ETH will serve as the Company’s primary treasury reserve asset.”
Related: SharpLink’s Joe Lubin wants to buy ETH faster than any other firm
In early July, Lubin went so far as to say that ETH treasuries are crucial for the development of the Ethereum ecosystem. He said that such companies are “a great business to run,” but also explained that “it’s going to be critical to enable the supply-demand dynamics of Ether to right-size as we build more and more applications.”
Related: SharpLink purchases $667M in Ether at near record prices
Despite its close ties to the Ethereum ecosystem, SharpLink does not hold the industry’s biggest Ether treasury. According to Strategic ETH Reserve data, that spot is held by former Bitcoin (BTC) mining-focused company BitMine, with its 1.5 million Ether holdings, worth $6.47 billion at the time of writing.
SharpLink Gaming holds 740,800 Ether worth $3.14 billion, less than half of BitMine. SharpLink is also currently standing on an unrealized gain of nearly $600 million after Ether’s recent price gains.
Magazine: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’
Source: https://cointelegraph.com/news/ether-top-corporate-treasury-sharplink-authorizes-1-5b-stock-buyback?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
