SharpLink Gaming, Inc. (SBET): A Bull Case Theory

 We came across a bullish thesis on SharpLink Gaming, Inc. on Rittik’s Substack by Anand Capital. In this article, we will summarize the bulls’ thesis on SBET. SharpLink Gaming, Inc.'s share was trading at $16.79 as of September 15th. SBET’s  forward P/E was 147.06 according to Yahoo Finance.

SharpLink Gaming Inc. (NASDAQ: SBET) has undergone a dramatic transformation from a struggling sports betting affiliate marketing company into one of the largest corporate holders of Ethereum. With 521,939 ETH worth over $2 billion, SBET is now the second-largest corporate Ethereum treasury globally, providing investors with a rare pure-play ETH exposure through traditional equity markets. The pivot was formalized in May 2025 with a $425 million private placement to fund ETH accumulation, accompanied by the appointment of Ethereum co-founder and ConsenSys CEO Joseph Lubin as Chairman, signaling credibility and strategic alignment with the blockchain ecosystem.

Despite traditional operations effectively winding down, the Ethereum treasury strategy provides the company with substantial intrinsic value, translating to an estimated $45–50 per share purely on ETH holdings. Current trading reflects both Ethereum’s price trajectory and expectations for management’s execution, with activist retail investors and crypto-focused institutions fueling high volatility. Beyond treasury management, SBET’s future growth may come from staking, DeFi yield strategies, Web3 gaming, and blockchain infrastructure opportunities, leveraging its scale and Lubin’s industry network.

Risks remain pronounced, particularly given the stock’s extreme correlation with Ethereum price swings, execution uncertainty, and regulatory scrutiny of crypto treasury strategies. However, a sale of ETH at higher valuations or the successful layering of blockchain initiatives could result in outsized upside. With 44 institutional investors already onboard and strong retail enthusiasm, SBET presents a speculative buy rated at a $25–45 range over 12–24 months. For high-risk investors, disciplined position sizing of 1–5% offers asymmetric exposure to Ethereum’s long-term growth.

Previously we covered a bullish thesis on DraftKings Inc. (DKNG) by LongTermValue Research in April 2025, which highlighted the company’s strong position in online sports betting, expansion across U.S. states, and long-term EPS growth potential. The company’s stock price has appreciated approximately by 29% since our coverage. This is because legalization momentum and profitability gains supported the thesis. The thesis still stands as DKNG maintains its competitive strength. Anand Capital shares a similar view but emphasizes on SharpLink Gaming’s Ethereum treasury strategy.

SharpLink Gaming, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held SBET at the end of the second quarter which was 0 in the previous quarter. While we acknowledge the potential of SBET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.