If it seems like every other article I've written in July has been about Ethereum (ETH-USD) treasury companies, you'll have to forgive me; but I have more to say. Not to be forgotten, with Bit Digital (
SharpLink Gaming: Another Overpriced Ethereum Wrapper
Summary
- SharpLink Gaming's stock surge is driven solely by its Ethereum holdings, not underlying business fundamentals or revenue growth.
- SharpLink has aggressively raised capital to buy ETH, now holding over 280,000 ETH, with nearly all assets staked for rewards.
- SBET stock trades at almost 4x the value of its ETH holdings, making its valuation excessive compared to simply owning ETH or ETFs.
- Despite being bullish on Ethereum, I see SBET's price as speculative and would avoid the stock at this premium to its net asset value.
Former media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. I'm not an investment advisor. I just share what I do with my own capital and why. Outside of Seeking Alpha, I also write the Heretic Speculator newsletter over at Substack.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTC-USD, ETH-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I'm not an investment advisor.
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