SharpLink Gaming: An Undervalued Ethereum Proxy With 24% Upside

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Excerpt

The following is a 250-word excerpt from my full article on Seeking Alpha: A crowdsourced financial market content service where investors can share ideas, discuss news, and make informed investment decisions. Below is a link to the full article:
https://seekingalpha.com/article/4848209-sharplink-gaming-an-undervalued-ethereum-proxy-with-24-percent-upside

Summary

• SharpLink Gaming trades below its ETH-derived net asset value, implying material upside to fair value.

• The company’s ETH concentration is rising faster than its share dilution, lifting ETH per share.

• Management accesses enhanced multi-year staking yields unavailable to retail or ETFs.

• SharpLink can issue shares above NAV and repurchase below NAV, supporting long-term NAV growth.

• ETH volatility, dilution, and reliance on capital markets remain the primary risks.

Investment Thesis

I assign SharpLink Gaming (SBET) a buy rating because the stock trades at a discount relative to the value of its Ethereum treasury, with a potential 24.5% upside to its fair value estimate of $12.55 per share. The company has expanded its ETH concentration, management can secure yield opportunities from its ETH staking that are unavailable to retail or ETFs, and the company is positioning itself as a direct beneficiary of Ethereum's accelerating institutional adoption. Management's ability to issue shares above NAV, repurchase shares below NAV, and its access to multi-year staking initiatives also give the company a versatility to grow its ETH per share over time using multiple levers. Dilution and ETH volatility are, of course, ongoing risks, but these risks have been factored into its valuation given below, and, at today's price, the company offers investors an undervalued proxy for ETH that is also displaying improving fundamentals…