SharpLink Gaming, Inc. (Nasdaq: SBET), a major corporate holder of Ether (ETH) and a strong proponent of Ethereum adoption, has announced its financial performance for the quarter ending June 30, 2025. The company also provided insights into its rapidly growing ETH treasury strategy. In June 2025, SharpLink made a pivotal strategic decision to designate ETH as its main treasury reserve asset, aiming to offer investors an efficient means of engaging with Ethereum’s evolving role in global finance, underpinned by institutional-level discipline and transparency.
SharpLink is actively building its ETH reserves through careful capital accumulation and effective treasury management, resulting in a robust treasury that generates yields and captures the full potential of ETH while enhancing its ETH Concentration metric. This approach not only fortifies the Ethereum network but also fosters long-term value creation that aligns the interests of shareholders with the broader growth of the Ethereum ecosystem. The foundation of SharpLink’s treasury strategy rests on the belief that ETH will become a fundamental asset in the next-generation financial framework being developed on the Ethereum platform.
Key Developments Following the Launch of ETH Treasury Strategy
Since launching its ETH treasury strategy, SharpLink has made remarkable strides, including the formation of a top-tier leadership team. Joseph Lubin, a co-founder of Ethereum and CEO of Consensys, has been appointed as the Chairman of the Board. Joseph Chalom, who spent 20 years at BlackRock and led its digital asset initiatives, has taken on the role of Co-Chief Executive Officer. The company has also entered a strategic alliance with Consensys, the leading Ethereum software firm, distinguishing itself from other companies managing ETH treasuries.
SharpLink has built a skilled team of professionals in capital markets and treasury management to implement its strategy, supported by prominent crypto asset managers and custodians. The company has successfully raised over $2.6 billion through various offerings to facilitate its ETH acquisitions and now holds 728,804 ETH. Almost all of this ETH has been staked, generating approximately 1,326 ETH in cumulative rewards thus far. Furthermore, SharpLink has significantly improved its ETH Concentration metric, which assesses the effectiveness of its ETH accumulation strategy, increasing it by 98% from 2.00 to 3.95 in just a few weeks.
Chalom commented, “The second quarter represented an exciting milestone as we launched SharpLink’s ETH treasury strategy, placing us at the forefront of a transformative opportunity in finance and technology. In a short timeframe, we have raised substantial capital and expanded our ETH holdings effectively. Supported by Consensys’ unparalleled expertise and our institutional-grade teams, SharpLink has emerged as one of the largest and most credible corporate ETH holders globally.”
Lubin added, “Ethereum functions as the trust foundation for the decentralized economy, and SharpLink’s proactive approach to accumulating, staking, and managing ETH uniquely positions us among public companies in this space. We are diligently generating value for our shareholders through yield optimization and strategic capital management.”
Financial Overview for the Quarter Ending June 30, 2025
In terms of financial performance for the three months ending June 30, 2025, SharpLink reported revenues of $0.7 million, a decrease from $1.0 million in the same quarter of the previous year. Gross profit stood at $0.2 million, representing 30% of revenue, compared to $0.3 million or 28.5% in Q2 2024. Operating expenses rose to $2.3 million, up from $1.5 million in the prior year. Additionally, other operating expenses included $16.4 million in non-cash stock-based compensation linked to the strategic advisory agreement with Consensys, alongside a non-cash unrealized loss of $2.4 million on ETH as of June 30, 2025, offset by an unrealized gain of $5.4 million on ETH holdings.
Notably, the company recorded an $87.8 million non-cash impairment on its liquid staked ETH (LsETH) holdings due to a drop in LsETH prices during Q2 2025, as mandated by U.S. GAAP accounting regulations. The impairment reflects the difference between the carrying value and the lowest quoted price of LsETH since acquisition, which was approximately $2,300 during the quarter. Therefore, the carrying value of LsETH held as of June 30, 2025, was adjusted to $382.4 million. It is important to note that this loss is non-cash and arises from accounting standards; the company has not sold or redeemed any of its LsETH assets.
SharpLink recorded a net loss of $103.4 million compared to a net loss of $0.5 million in the same quarter of 2024, primarily due to the non-cash impairment loss and stock-based compensation considerations.
Financial Performance for the First Half of 2025
For the six months ending June 30, 2025, SharpLink reported revenues of $1.4 million, down from $2.0 million during the equivalent period last year. The gross profit for this timeframe was $0.3 million, compared to $0.6 million in the first half of 2024. The company faced a net loss of $104.4 million, contrasting with a net income of $11.9 million in the first half of 2024, reflecting similar factors that impacted Q2 results.
For more comprehensive details regarding SharpLink’s financial and operational outcomes in the second quarter, investors are encouraged to review the Quarterly Report on Form 10-Q, which was submitted to the U.S. Securities and Exchange Commission on August 14, 2025.
Conference Call and Webcast for Q2 2025
SharpLink’s leadership will host a conference call and webcast at 8:30 AM ET today to discuss the company’s financial and operational results for the three- and six-month reporting periods ending June 30, 2025. The session will also cover recent developments, including the launch of the Ethereum treasury strategy on June 2, 2025, and subsequent initiatives aimed at enhancing long-term shareholder value.
To enhance clarity regarding the company’s yield performance, SharpLink has introduced a new metric, “ETH Concentration.” This metric is determined by dividing the number of ETH held by SharpLink by each 1,000 assumed diluted shares outstanding. This calculation factors in actual shares of common stock issued, including those from disclosed sales and offerings, as well as additional shares that would be issued upon exercise or settlement of outstanding warrants, stock options, and restricted stock units. However, it does not utilize the treasury stock method, meaning it does not consider equity award vesting conditions, stock option exercise prices, or any restrictions on debt instrument convertibility, nor does it account for potential share repurchases.
About SharpLink Gaming, Inc.
Based in Minneapolis, Minnesota, SharpLink Gaming, Inc. (Nasdaq: SBET) stands out as one of the largest publicly traded entities to adopt Ether (ETH) as its primary treasury reserve asset. This strategic choice aligns the company with the future trajectory of digital capital while allowing investors direct access to Ethereum, the foremost smart-contract platform and second most significant digital asset by market capitalization. Additionally, SharpLink is reimagining the online gaming landscape, guided by a seasoned team with extensive experience in sports media, gaming, and technology. The company is focused on developing scalable, secure, and transparent solutions that disrupt outdated models and foster genuine innovation in user experience.
Forward-Looking Statements
This press release contains forward-looking statements concerning future expectations, plans, and prospects, as well as other statements that are not historical facts, as defined by the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties. Forward-looking statements include, but are not limited to, projections regarding the utilization of proceeds from registered direct offerings, the execution of the company’s treasury strategy, and other non-historical assertions, often accompanied by terms such as “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar expressions. Actual results may significantly differ from those anticipated in these forward-looking statements due to several factors, including the company’s ability to achieve profitability, fluctuations in the market price of ETH and LsETH that could influence its financial statements, regulatory changes affecting cryptocurrencies and online betting, variations in securities laws or regulations, consumer acceptance of new offerings, demand for products, competitors’ actions, and broader economic conditions.
Under U.S. GAAP, companies must generally measure certain crypto assets at fair value, with any fluctuations reflected in net income for each reporting period. Changes in the fair value of crypto assets could lead to notable variances in the balance sheet and income statement. Furthermore, for crypto assets categorized as intangible digital assets, the company may need to report impairment charges in net income if the market price of ETH falls below its recorded cost value. Any forward-looking statements made in this press release are only valid as of the date of publication, and the company has no obligation to update any forward-looking statements presented here.
Investor Relations Contact: Sean Mansouri, CFA or Aaron D’Souza, Elevate IR, (720) 330-2829, ir@sharplink.com. Media Contact: media@sharplink.com.
