SBET: How to Value a Company Holding ETH?
SharpLink (SBET) is increasingly piquing the interest of investors. Its model is simple: the company holds a massive amount of Ethereum (ETH). This makes SBET a sort of publicly traded Ethereum proxy, similar to what MicroStrategy was for Bitcoin.
But how do you value this company? And above all, how do you understand the link between the price of ETH and mNAV (Market-to-Net-Asset-Value)?
1. The Basics: NAV (Net Asset Value)
SBET currently holds about 797,704 ETH.
At the current price of $4,405, this represents an asset value (ETH NAV) of $3.81 billion.
This value is SBET’s “treasure chest.”
Source: https://www.sharplink.com/eth-dashboard
2. The mNAV: Market Premium or Discount
The market doesn't just value SBET at the price of its ETH.
It applies a multiplier called mNAV:
- mNAV = 1 → SBET is worth exactly the value of its ETH
- mNAV > 1 → the market pays a premium (confidence in the model, growth, staking)
- mNAV < 1 → the market applies a discount (dilution risk, lack of confidence)
Today, mNAV = 1.01 → SBET is worth almost exactly the same as its ETH portfolio.
3. Direct Correlation with ETH
SBET moves almost in sync with Ethereum.
- If ETH rises, NAV rises.
- If mNAV also increases (market premium), SBET can appreciate even faster than ETH.
This creates an implicit leverage effect.
4. Extrapolation: What Would SBET be Worth if ETH Rose?
Current data (August 2025):
- Market Cap: $3.25B
- Stock price: $18.27
- Number of shares ≈ 178 million
Assumption: SBET keeps 797,704 ETH.
| ETH Price | ETH NAV (B$) | SBET Valuation with mNAV=1.6 | Price/Share (mNAV=1.6) | SBET Valuation with mNAV=2 | Price/Share (mNAV=2) |
|---|---|---|---|---|---|
| $5,000 | $3.99B | $6.38B | ≈ $35.8 | $7.98B | ≈ $44.8 |
| $6,000 | $4.79B | $7.66B | ≈ $43.0 | $9.59B | ≈ $53.8 |
| $10,000 | $7.98B | $12.8B | ≈ $71.9 | $16.0B | ≈ $89.9 |
Extrapolation with 1 Million ETH
Assumption: SBET increases its reserves to 1,000,000 ETH
- Number of shares ≈ 178 million (unchanged)
- We keep the assumptions of mNAV = 1.6 and 2.
| ETH Price | ETH NAV (B$) | SBET Valuation with mNAV=1.6 | Price/Share (mNAV=1.6) | SBET Valuation with mNAV=2 | Price/Share (mNAV=2) |
|---|---|---|---|---|---|
| $5,000 | $5.00B | $8.00B | ≈ $44.9 | $10.0B | ≈ $56.2 |
| $6,000 | $6.00B | $9.60B | ≈ $53.9 | $12.0B | ≈ $67.4 |
| $10,000 | $10.0B | $16.0B | ≈ $89.9 | $20.0B | ≈ $112.4 |
Simple Reading
- With 1 million ETH, every ETH price bracket mechanically increases the NAV.
- The theoretical stock price skyrockets if the market pays an mNAV premium:
- ETH at $6,000, mNAV=2 → ≈ $67 per share (vs $18 today).
- ETH at $10,000, mNAV=2 → ≈ $112 per share.
The bigger the ETH reserves, the more the mNAV multiplier acts as an amplifier.
5. Why Could mNAV Go Up?
- “MicroStrategy of ETH” narrative: SBET becomes the listed vehicle to play Ethereum
- Staking rewards: already 1,799 ETH earned in a few months, proof that the treasure is working
- Momentum effect: the more ETH rises, the more investors are willing to pay a premium
- ATM (stock issuance): allows raising funds, buying more ETH, and increasing holdings
Conclusion
Today, SBET trades without a premium (mNAV ≈ 1).
So it’s a simple way to expose your portfolio to ETH… but with the possibility of a double leverage effect if:
- ETH price goes up,
- and the market starts paying a premium (mNAV > 1.5 or even 2).
Concretely:
- At $6,000 ETH and an mNAV of 2, the SBET share could target ≈ $54 (vs $18 today).
- At $10,000 ETH and an mNAV of 2, the share could approach $90.
In short: ETH + mNAV = stock market accelerator.