SharpLink Gaming (SBET) saw its stock surge 5.23% in pre-market trading on Tuesday, following the company's announcement of initiating its ambitious $1.5 billion share buyback program. This strategic move signals a strong commitment to enhancing long-term stockholder value and reflects management's confidence in the company's future prospects.

According to the announcement, SharpLink has begun executing its share repurchase plan by buying back approximately 939,000 shares of its common stock at an average price of $15.98. The company stated that it expects to repurchase additional shares based on market conditions, using cash on hand, cash available from operating activities, or other financing sources.

SharpLink's management expressed their belief that the company's stock is significantly undervalued. By repurchasing shares when the Net Asset Value (NAV) is below 1, they aim to immediately enhance returns and provide a compounding effect for long-term shareholder value. The company also reaffirmed that it has not used its ATM facility below NAV, further demonstrating its commitment to maintaining shareholder value. This strategic move has clearly resonated with investors, as reflected in the pre-market stock price surge, potentially setting a positive tone for the regular trading session.