Citizens Initiates Coverage of SharpLink Gaming With 200% Upside
Citizens has initiated coverage of SharpLink Gaming (SBET) with a market outperform rating and a $50 price target, implying potential upside of over 200%, according to a report released Wednesday. In early trading, the stock climbed about 2% to $15.45.
The bank’s bullish stance is driven by a long-term positive outlook on Ethereum (ETH), forecasting ETH above $7,000 by 2026 and potentially surpassing $20,000 by 2030. SharpLink has quickly emerged as a leading ETH treasury operator, building a substantial ETH position and deploying it into staking and other yield-generating strategies to compound value over time.
Active ETH Management Strategy
SharpLink distinguishes itself from passive crypto holdings by actively managing its ETH balance sheet. The company issues equity at a premium to NAV, repurchases shares when trading below NAV, and leverages its ETH reserves to capture on-chain yield opportunities, according to analysts led by Devin Ryan.
Citizens describes this as a “flywheel” approach, which can increase NAV per share as Ethereum adoption grows and institutional participation rises. The company’s leadership—Ethereum co-founder Joseph Lubin as Chairman and former BlackRock executive Joseph Chalom as Co-CEO—blends crypto-native expertise with institutional capital market experience, supporting the bank’s positive outlook.
Market Positioning and Capital Raise
Citizens sees SharpLink positioned to become a market leader as ETH matures into a global financial asset. By combining on-chain operational leverage with off-chain financial discipline, the stock offers a compelling alternative to traditional crypto investment vehicles and may command a valuation premium.
The company recently raised $76.5 million in a direct stock offering priced above market, further strengthening its treasury strategy and growth prospects.
