SharpLink, commonly referred to as “ETH MicroStrategy,” is currently trading below the value of the Ethereum it holds.
This has sparked speculation of a major turnaround in the market, delivering one of those rare signals that traders have been waiting years to see.
SharpLink NAV Drop Sparks Controversy Over Ethereum’s True Dip
At the time of writing, SharpLink’s total market Capital is $3.24 billion, slightly lower than the company’s Ethereum holdings, which are worth $3.29 billion.
Notably, this is a rare discount, indicating that investors value the company lower than the assets it owns.
SharpLink's market Capital and ETH holdings. Source: StrategicETHreserve .xyzCryptocurrency analyst AB Kuai Dong highlighted this unusual situation, explaining that when the Net Asset Value (NAV) falls below 1, it indicates that the company’s shares are trading at a discount to the amount of ETH it controls.
“This also means that the overall market value of ETH MicroStrategy is lower than the value of ETH assets on its books. The Dip -fishing reference line predicted by legendary traders has finally appeared this time,” Kuai Dong wrote on X.
For seasoned traders, such NAV discounts are rare and are often interpreted as a contrarian buy signal, indicating that capitulation may be approaching.
Analysts Target Bullish Price Amid SharpLink Acquisition Rumors, Retail Investor Signals
Last week, SharpLink announced a $1.5 billion buyback program when its market Capital hovered around $3.2 billion, representing an acquisition intervention to recover nearly half of its remaining value.
The news sparked a slight increase in its stock, SBET, from $18 to $21 before falling back to $19.17 at the time of writing. At a structural level, the NAV ratio has become a trading compass.
“When mNAV > 1: exchange stocks for coins. When mNAV explains.
However, investors should do their own research, as sentiment also depends on Ethereum's price action.
Elsewhere, Donald Dean highlighted SharpLink’s position as an attractive risk/reward bet. The economist predicted strong upside targets if ETH rallies.
In its NAV-linked model, SharpLink shares could hit $37.22 when ETH is at $4,600, $40.37 when ETH is at $5,000, and $48.28 when ETH is at $6,000.
Meanwhile, SharpLink itself has stepped up its ETH-first mission, revealing this shift in a recent post.
“At SharpLink, we have two main goals: Raising Capital to purchase ETH and using that ETH to generate returns for shareholders,” the company explains .
However, this strategy has faced criticism, with some, like crypto commentator Grubles, pointing out the opportunity cost of Staking ETH.
“T-Bills have a higher yield than Staking ETH. So you are leaving money on the table when Staking ETH,” Grubles challenged .
For many in the crypto space, SharpLink's discount has less to do with the company's treasury mechanism and more about Ethereum's long-term Dip .
Some traders see the NAV phenomenon 
Ethereum (ETH) Price Performance. Source: BeInCrypto
At the time of writing, Ethereum is trading at $4,415, down nearly 5% over the past 24 hours.
If ETH rallies from here, SharpLink’s NAV signal could be an early indicator, suggesting the start of an Ethereum-led market recovery.
