SharpLink Gaming, Inc. reported a $103.4 million net loss for the second quarter of 2025, largely due to a non-cash impairment on its liquid staked Ether holdings, as the company accelerates its shift to Ethereum as its primary treasury reserve asset.
The Nasdaq-listed firm said on Friday that the impairment — required under U.S. accounting rules — totalled $87.8 million after a decline in the price of liquid staked Ether during the quarter. SharpLink emphasized the loss was non-cash and that no assets had been sold or redeemed.
Revenue for the quarter ended June 30 fell to $700,000 from $1 million a year earlier, while gross profit slipped to $200,000 from $300,000. Operating expenses climbed to $2.3 million, up from $1.5 million, with an additional $16.4 million in non-cash stock-based compensation linked to a strategic advisory deal with Ethereum software firm Consensys.
Treasury Strategy Centers on Ethereum
In June, SharpLink adopted Ether (ETH) as its core treasury reserve asset, aiming to give shareholders exposure to Ethereum-based financial infrastructure. The company has accumulated 728,804 ETH, staking nearly all of it to generate rewards, which have totalled about 1,326 ETH so far.
SharpLink said its ETH Concentration metric — which measures the efficiency of ETH accumulation — nearly doubled in weeks, rising from 2.00 to 3.95. Capital for ETH purchases came from more than $2.6 billion raised through private and public offerings.
The company has also entered a strategic partnership with Consensys and appointed Ethereum co-founder Joseph Lubin as board chairman and former BlackRock executive Joseph Chalom as co-chief executive officer.
First-Half Results Show Wider Loss
For the first six months of 2025, SharpLink posted revenue of $1.4 million, down from $2 million in the prior-year period. Gross profit dropped to $300,000 from $600,000, and the company swung to a net loss of $104.4 million from net income of $11.9 million last year.
The losses were attributed primarily to the impairment charge on liquid staked ETH and the non-cash stock-based compensation expense. The carrying value of SharpLink’s liquid staked ETH stood at $382.4 million as of June 30. SharpLink said its long-term conviction is that ETH will become the “core trust commodity” of a next-generation financial system built on Ethereum technology.
