Sharplink's aggressive strategy for managing its Ethereum reserves drove a rise in staking revenue in the second quarter, but a softening crypto market led to significant accounting losses for the company.
The Nasdaq-listed company reported revenue of $11.5 million for the three months ended June 30, up from $697,000 a year earlier. Almost all of this came from $ETH holdings, with staking income contributing $11.2 million.
However, Sharplink posted a net loss of $394.3 million compared to a loss of $103.4 million a year ago. This result was primarily driven by non-cash expenses related to the company's cryptocurrency portfolio.
Decline in $ETH Price Led to Accounting Losses
Sharplink recorded a $321 million unrealized loss on crypto assets held at fair value due to weaker ether prices during the quarter. The company also recognized an impairment of $76.1 million on its LsETH and weETH liquid staking positions.
The company emphasized that the impairment charges do not reduce the number of tokens it owns. However, under the accounting principles it applies, impairment reduces the book value of these assets and cannot be reversed if prices recover.
As of the end of the quarter, crypto assets were valued at approximately $1.4 billion under U.S. accounting standards. Cash and cash equivalents stood at $56.2 million.
As of June 30, Sharplink owned approximately 886,881 $ETH and $ETH equivalents. By August 3, this figure had grown to approximately 888,938 $ETH, solidifying the company's position as the second-largest publicly traded corporate Ethereum treasury manager.
"We remained active in both treasury management and Ethereum ecosystem development, deploying capital to initiatives aimed at increasing the productivity of our $ETH and strengthening the infrastructure that fosters broader adoption," said CEO Joseph Chalom.
Sharplink Puts Its Ethereum Assets to Work
In June, the company raised $75 million in a stock and warrant offering priced at a premium to its net asset value. A portion of these funds was used to purchase approximately 10,000 $ETH at an average price of $1,611.
Additionally, during the quarter, Sharplink repurchased about 2.1 million shares for $10 million. Since the buyback program began in August 2025, the company has spent $41.7 million to repurchase just over 4 million shares.
Following the end of the quarter, Sharplink allocated $100 million to the new Galaxy Sharplink Onchain Yield Fund, with Galaxy contributing an additional $25 million. The fund will implement strategies aimed at generating additional yield from on-chain assets.
The quarterly results highlight the trade-off inherent in corporate crypto treasuries. Sharplink generates regular income by staking its $ETH, but its profitability remains heavily dependent on token prices. For investors, the key question is whether this yield can ultimately outweigh the volatility of the underlying treasury portfolio.
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