SharpLink began a $1.5 billion share repurchase program supported by an Ethereum-focused treasury strategy. The initiative changes how the company manages capital and affects investors, traders, and managers with crypto exposure. According to experts, the program links corporate actions to crypto market dynamics in a way that could reshape performance metrics and risk.
Program overview and timeline
SharpLink combines ETH accumulation and staking with share purchases to work toward higher earnings per share. The repurchase program began in August 2025 and totals $1.5 billion. Reports state the company’s Ether holdings are above $3.6 billion as of September 2025. The operating coefficient is important to shareholders, framing how these activities translate into reported performance and value.
Mechanics, EPS effects, and management’s view
The company uses staking income to repurchase shares or reinvest in ETH, creating a direct connection between ETH price and equity value, as experts states. A brief definition: staking means locking ETH to help validate the network and receive periodic rewards. Impairment (GAAP) is an accounting charge for a loss in asset value that can reduce reported earnings. Management framed the transaction as a buying opportunity with undervalued shares; Co-CEO Joseph Chalom said the repurchase shows conviction that the market undervalues the business, according to the same coverage.
Critiques, risks, and what to watch
Critics argue the strategy makes SharpLink an “overvalued wrapper of Ethereum” and that investors might prefer ETH directly or Ethereum-linked ETFs, as ainvest reports, with Martin Shkreli among the analysts cited. A risk of dilution from prior share issuances, which financed ETH accumulation, has warning. The plan increases correlation between ETH price and the stock; a sharp crypto market drop could force impairment recognitions and raise equity volatility.
Using staking income for buybacks adds steady cash generation only if staking returns and the ETH price hold, and liquidity and value could experience strain. Operational levels to watch include the buyback pace, the size of the ETH treasury, and official communications on portfolio governance.
Regulatory context
According to market experts, the SEC’s May 2025 FAQs on crypto custody add nuance to the application of Rule 15c3-3. The classification of ETH as a security remains unresolved, introducing a regulatory variable that needs careful monitoring and could influence the economics of the treasury and buyback strategy.
SharpLink’s approach ties equity value more tightly to Ethereum market dynamics while pursuing buybacks to support per-share metrics. The next operational observation point will be the frequency and volume of purchases under the program, and any updates on the regulatory classification of ETH will be important for assessing ongoing risk and valuation.
