SharpLink’s $394M Q2 loss: ETH volatility overshadows revenue

SharpLink posted a $394.3M Q2 net loss from ETH markdowns, despite $11.5M revenue and more ETH. Shares fell 5.83% after launching a $125M onchain yield fund.

SharpLink reported a second-quarter net loss of $394.3 million, mainly due to non-cash accounting markdowns on its Ethereum holdings as ETH prices dropped sharply. Despite the headline loss, the company’s core business improved, with total revenue rising to $11.5 million, driven by a surge in staking revenue. The loss included a $321 million unrealized loss on ETH and a $76.1 million impairment charge on liquid staking tokens LsETH and weETH. However, these charges did not reduce the actual number of tokens held. SharpLink increased its ETH treasury from 886,881 to 888,938 by early August, acquiring about 10,000 ETH after a $75 million capital raise. The company also repurchased 2.1 million shares and launched a $125 million onchain yield fund in partnership with Galaxy. Despite strong revenue growth and continued ETH accumulation, SBET shares declined 5.83% after the earnings release, underscoring the impact of volatile crypto accounting on reported profitability.