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Citizens Sees SharpLink as a Breakout Ether Treasury Play With More Than 200% Upside
The bank initiated coverage of the stock with a market outperform rating and a $50 price target.
Updated Oct 16, 2025, 2:55 p.m. Published Oct 16, 2025, 2:24 p.m.
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What to know:
- Citizens initiated coverage of SharpLink Gaming with a market outperform rating and a $50 price target, implying over 200% upside.
- The bank highlighted the company's strategy of actively managing its ether balance sheet to capture on-chain yields and compound NAV growth.
- Key drivers of Citizens' bullish call are ether's long-term price potential and SharpLink’s leadership team, led by Joseph Lubin and Joseph Chalom, the report said.
Citizens has initiated coverage of SharpLink Gaming (SBET) with a market outperform rating and a $50 price target, implying potential upside of more than 200%, the bank said in a Wednesday report.
The shares were 2% higher in early trading, around $15.45.
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The bank’s bullish stance rests on a positive long-term view of ether’s price trajectory, forecasting ETH above $7,000 by 2026 and potentially exceeding $20,000 by 2030.
The report argued that SharpLink has quickly emerged as one of the most ambitious ether treasury operators in the public markets. After accumulating a substantial ETH position, the company has begun deploying those assets into staking and other yield-bearing strategies designed to compound value over time.
The stock is a novel entry point for investors seeking leveraged exposure to Ethereum’s growth, analysts led by Devin Ryan wrote.
Rather than functioning as a passive vehicle holding bitcoin or ether, SharpLink aims to actively manage its ETH balance sheet, issuing equity at a premium to net asset value or buying it back when trading below NAV, and using its ETH reserves to capture on-chain yield opportunities, the analysts wrote.
Citizens describes this approach as a "flywheel" that can drive NAV per share higher as the Ethereum ecosystem expands and institutional adoption accelerates.
The bank's analysts also assigned a premium valuation to SharpLink based on the company’s leadership and strategy. This includes Joseph Lubin, a co-founder of Ethereum, as Chairman and Joseph Chalom, a former BlackRock executive, as Co-CEO, describing the team as ideally positioned to scale a treasury model that blends crypto-native expertise with institutional capital market experience.
SharpLink’s strategy positions it to become a market leader as ether matures into a global financial asset, according to Citizens. By combining operational leverage on-chain with financial discipline off-chain, the shares could offer a compelling alternative to traditional digital asset investment vehicles, and one that investors may reward with a valuation premium.
SharpLink raised $76.5 million in a direct stock offering priced above market, the company said on Thursday.
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