SharpLink Gaming (SBET), led by Ethereum co-founder Joe Lubin, repurchased $15 million worth of shares as its market cap fell below its $3.6 billion in ETH holdings. Executives believe the stock is undervalued, with nearly all ETH holdings staked for income. The stock was up 3.6% in pre-market trading.

The Minneapolis-based firm bought back about 939,000 shares at an average price of $15.98. This move is part of its share buyback program, showing confidence in its long-term strategy and growth prospects. SharpLink’s stock rose 3.6% alongside a 1% increase in ETH price since yesterday.

SharpLink currently holds $3.6 billion worth of ETH, with most holdings staked for income. The stock trades at a 0.87 multiple of net asset value (mNAV), limiting its ability to raise funds by selling shares for ETH purchases. Executives have refrained from selling shares below net asset value to avoid diluting ETH holdings per share.

Digital asset treasury firms have seen sharp declines recently as crypto markets cool off. BitMine (BMNR), holding nearly $9 billion in ETH, also fell below the 1 mNAV threshold. Both BMNR and SBET have dropped about 60%-70% since their July highs.

Read more at Yahoo Finance: Ether Treasury Company SharpLink Gaming Buys Back $15M in ‘Undervalued’ Shares