Sharplink reported second-quarter revenue of $11.5 million, a massive jump from $0.7 million a year earlier, driven almost entirely by its Ethereum treasury strategy launched in June 2025. However, the company also posted a net loss of $394.3 million, compared to a $103.4 million loss in the year-ago period, primarily due to non-cash charges on its substantial ETH holdings.
The results underscored the volatility of reported earnings for a company built around a large crypto treasury. The biggest drag came from a $321 million unrealized loss on ETH, reflecting lower market prices, and a $76.1 million impairment charge related to LsETH and weETH positions. Despite these paper losses, Sharplink stressed that the number of ETH and ETH-equivalent tokens it controlled remained unchanged. Under U.S. GAAP, the impairments lowered carrying values and cannot be reversed even if market prices recover.
Operationally, staking revenue contributed $11.2 million of the total $11.5 million, making ETH yield the company’s main income source. For the first half of 2026, staking revenue reached $22.7 million, while the net loss ballooned to $1.08 billion, including $827.7 million in unrealized crypto losses and $267.8 million in impairment charges. As of June 30, Sharplink held approximately 886,881 ETH and ETH equivalents (632,784 native ETH, 181,321 LsETH, and 72,776 weETH), valued at about $1.4 billion under GAAP. The treasury had grown to 888,938 ETH by August 3.
Sharplink completed a $75 million registered direct offering in June (priced above net asset value) and used part of the proceeds to purchase 10,000 ETH at an average price near $1,611. It also repurchased 2.1 million shares for $10 million. The company joined the Russell 2000 and Russell 3000 indexes and, after the quarter, launched the Galaxy Sharplink Onchain Yield Fund with $125 million in committed capital ($100 million from Sharplink). CEO Joseph Chalom has opposed proposals to eliminate issuance-based staking rewards, arguing that native yield distinguishes ETH from non-yielding assets.
