SharpLink Gaming (NASDAQ:SBET) reported a wider second-quarter net loss as unrealized losses and impairment charges tied to its Ethereum holdings outweighed growing revenue from staking and yield-generating strategies.
The company, which has positioned its corporate treasury around Ethereum, reported second-quarter revenue of $11.5 million for the period ended June 30, 2026, up from $700,000 a year earlier. Chief Financial Officer Bob DeLucia said the increase was driven by staking and ETH yield-generation activities.
DeLucia said the accounting charges reflected market pricing and U.S. GAAP requirements rather than realized economic losses on the company’s Ethereum position. “These accounting measures do not represent realized economic losses on our ETH position, nor do they impact the number of ETH units we hold,” he said.
Ethereum Treasury Expands
As of June 30, SharpLink held 632,784 native ETH with a net fair value of $989 million. It also held 162,083 liquid staked ETH tokens and 66,267 wrapped ether.fi ETH tokens, which together had a net cost value of $369.2 million.
After the quarter ended, the company’s combined holdings increased to 888,938 ETH as of Aug. 3, consisting of 634,255 native ETH, 181,748 as-if-redeemed liquid staked ETH, and 72,935 as-if-redeemed wrapped ether.fi ETH.
The company ended the quarter with $56.2 million in cash, up from $28.5 million at the end of 2025. DeLucia said SharpLink believes its cash, unencumbered ETH holdings and capital-allocation flexibility provide ample liquidity to pursue its strategy across market conditions.
Selling, general and administrative expenses rose to $9.1 million from $2.4 million a year earlier. The company attributed the increase to operating its ETH treasury strategy for a full quarter, including costs for personnel, custody, insurance, legal, accounting and public-company infrastructure.
Capital Allocation and Share Repurchases
Chief Executive Officer Joseph Chalom said SharpLink’s objective is to compound ETH per share and expand net ETH holdings over time through capital allocation and productive treasury management.
During the quarter, SharpLink completed a $75 million registered direct offering on June 23, issuing approximately 10 million shares and accompanying warrants at a combined purchase price of $7.49 per share and warrant. Chalom said the offering was completed at a premium to the company’s net asset value.
The company used part of the proceeds to purchase approximately 10,000 ETH at an average price of about $1,611 per ETH. SharpLink also repurchased 2.1 million shares during the quarter at an average price of about $4.70 per share, spending approximately $10 million.
Since beginning its repurchase program in August 2025, SharpLink has repurchased about 4 million shares for a total cost of approximately $41.7 million, according to Chalom.
The company was added to the Russell 2000 and Russell 3000 indexes as part of the Russell Index June 2026 reconstitution. Chalom described the addition as a milestone that could broaden institutional visibility and index-linked ownership eligibility.
Treasury Productivity Initiatives
SharpLink is seeking to generate ETH returns above the Composite Ethereum Staking Rate, or CESR, through staking and selective treasury deployments. Chalom said the company evaluates opportunities based on their risk, liquidity profile, operating requirements and potential incremental ETH return.
The company recently announced the Galaxy SharpLink Onchain Yield Fund, which has $125 million of committed capital. SharpLink committed $100 million and Galaxy Digital committed $25 million. SharpLink expects to fund its investment with ETH or liquid staked ETH.
Chalom said the fund’s initial opportunities had been identified but that deployment would depend on completing diligence under its risk and return standards. He said the fund is intended to pursue long-term, risk-adjusted incremental ETH returns above the native staking rate, rather than providing a specific yield target.
According to Chalom, the fund is expected to focus primarily on highly collateralized on-chain opportunities and supporting new protocols that need initial capital to attract broader participation. He said Galaxy was selected for its sourcing, diligence and risk-management capabilities.
Institutional Ethereum Strategy
Chairman Joe Lubin said Ethereum is evolving from an experimental technology into infrastructure for programmable financial and economic activity, including stablecoins, tokenized assets, decentralized markets and automated commerce.
Lubin cited recent Ethereum-related initiatives from Robinhood, BlackRock and JPMorgan as examples of institutional activity on the network. He also pointed to Ethereum’s planned “Glamsterdam” hard fork as part of a longer-term roadmap intended to improve network capacity, performance, privacy and resilience.
SharpLink has provided anchor funding to EthLabs, Ethereum Institutional and EthSystems. Chalom said the organizations address core protocol development, institutional engagement, and privacy and compliance infrastructure, respectively.
- EthLabs is focused on protocol development, scaling, interoperability and usability.
- Ethereum Institutional serves as an institutional engagement organization and has developed more than 500 institutional relationships, according to Chalom.
- EthSystems is developing privacy and compliance infrastructure for regulated institutions transacting on Ethereum.
Chalom said SharpLink’s support for the organizations is a strategic investment in Ethereum’s ecosystem rather than philanthropy. He said the entities are intended to operate independently and do not provide SharpLink with profit-sharing or control rights.
Management also highlighted the potential for “agentic finance,” in which autonomous software agents could make payments, manage portfolios and execute financial activities. Chalom said Ethereum’s stablecoin, tokenized-asset and decentralized-finance infrastructure could support that activity, while Lubin emphasized the network’s neutral and decentralized architecture.
About Sharplink Gaming (NASDAQ:SBET)
SharpLink Gaming, Inc operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers.
