Billions Plan must restore the course of Ethereum giant Sharplink

One of the largest listed Ethereum (ETH) holders, Sharplink Gaming, surprises friend and foe with a billion-dollar plan that must push the stock price. The timing is striking, especially now that the cryptomarkt is under pressure and supervisors intervene. What is the larger plan behind this move of the Ethereum-heavyweight?

Billions for the return program

Sharplink Gaming has announced that he can buy back no less than 1.5 billion dollars in its own shares. The step comes at a time when the company’s share acts under the so -called Net Asset Value (NAV). This means that the value of his ETH assets is higher than the market price of the share.

“We believe that the market is currently under value our company,” said co-CEO Joseph Chalom. “As long as it stays that way, we do not want to issue new shares but rather existing purchases. We increase the value per share and show that we have trust in our long -term strategy.”

The return started on Tuesday with the purchase of 939,000 shares at an average price of $ 15.98. At the end of the day later, the share closed a little higher, on a rate of $ 16.67. Yet the share is still more than 29 percent lower than a month ago.

Sharplink now has 837,230 ETH, good for a current value of around 3.63 billion dollars. Almost the full stock has been staked. This means that the coins are secured in the network to process and secure transactions. In exchange, Sharplink receives passive income in the form of new ETH.

Sharplink under pressure from Nasdaq

At the same time, the Nasdaq, where Sharplink is listed, is running pressure. The stock market has recently looked critically at companies that issue new shares to invest in crypto. In response, the share dropped to a low point of $ 14.47 last Friday.

Nasdaq announced new rules that should prevent companies from collecting unlimited capital for crypt bumps. From now on companies must first request permission from their shareholders before they issue new shares. Whoever skips that step risks sanctions, up to and including suspension or delisting.

Sharplink CEO warns of ‘Yield Chasing at Ethereum’

The rise of Ethereum as a reserve continues to grow. Nevertheless, Sharplink CEO Joseph Chalom warns about recklessness. In an interview with Bankless, he expressed his worries about so -called “Yield Chasing”: companies that use their ETH for maximum interest revenues.

“Strike as we do is relatively safe. But if you look for double digits in the Defi world, you take big risks,” says Chalom.

He points to smart contract risks, credit risk and the danger that companies make irresponsible decisions to make up for previous losses. “The biggest danger is that parties who take extra risks that are lagging behind are not wise. That can infect the entire sector.”