TD Cowen has reaffirmed its Buy rating and $16 price target for Sharplink (NASDAQ: SBET), a publicly traded company that accumulates Ethereum (ETH). The analyst call highlights a persistent discount between the firm's stock price and the net asset value (NAV) of its substantial ETH holdings.
Sharplink currently holds approximately 873,000 ETH, valued at around $2 billion based on current market prices, translating to an estimated $9.68 per share in ETH alone. With the stock closing at $7.76, it trades at roughly 0.8 times NAV. TD Cowen described this discount as 'increasingly difficult to justify' given improving capital efficiency and expanding Ethereum demand.
The reiterated $16 target implies a more than 100% upside from current levels. The bank’s analysis also points to a newly announced co-managed yield fund with Galaxy Digital, targeting about $125 million in capital, with Sharplink contributing around $100 million. This fund aims to generate returns above basic staking yields by tapping DeFi and liquidity opportunities while maintaining core ETH exposure.
TD Cowen identifies four demand pillars for ETH: stablecoins as a global payments layer, tokenization of real-world assets reaching an inflection point, DeFi as core financial infrastructure, and AI-driven autonomous economic activity (agentic finance). The staking-driven operating model provides downside support, with annual staking yield covering fixed charges by about 2.6 times and a breakeven ETH price of $883, well below current levels.
Sharplink, formerly SharpLink Gaming, pivoted to an Ethereum treasury strategy in mid-2025 with backing from ConsenSys and Ethereum co-founder Joe Lubin. TD Cowen initiated coverage in April, and the latest report underscores a thesis that the market is undervaluing the company’s ETH holdings.
