SharpLink Gaming pivots to ETH treasury strategy, reports Q2 loss

Published 15/08/2025, 13:06
SharpLink Gaming pivots to ETH treasury strategy, reports Q2 loss

MINNEAPOLIS - SharpLink Gaming, Inc. (Nasdaq:SBET), currently valued at $3.27 billion, reported a net loss of $103.4 million for the second quarter ended June 30, 2025, as the company executed a strategic shift to establish Ethereum (ETH) as its primary treasury reserve asset. According to InvestingPro analysis, the company maintains strong liquidity with a current ratio of 3.27, despite recent volatility.

The loss was largely driven by an $87.8 million non-cash impairment on liquid staked ETH holdings and $16.4 million in non-cash stock-based compensation related to a strategic advisory agreement with Consensys.

Revenue for the quarter was $0.7 million, down from $1.0 million in the same period last year, with gross profit of $0.2 million representing 30% of revenue. InvestingPro data shows a concerning trend with revenue declining 27% over the last twelve months, suggesting the company’s valuation may be stretched relative to its Fair Value.

Since launching its ETH treasury strategy in early June, SharpLink has raised over $2.6 billion through various offerings to fund ETH acquisitions. The company now holds 728,804 ETH, with nearly 100% of these holdings staked, generating approximately 1,326 ETH in rewards to date.

The company has strengthened its leadership team with the appointment of Ethereum Co-Founder Joseph Lubin as Chairman of the Board and former BlackRock executive Joseph Chalom as Co-Chief Executive Officer.

"Our second quarter marked the exciting launch of SharpLink’s ETH treasury strategy, which has positioned us at the center of a transformational opportunity in global finance and technology," said Chalom in the press release statement.

For the six months ended June 30, 2025, SharpLink reported revenue of $1.4 million, down from $2.0 million in the first half of 2024, and a net loss of $104.4 million compared to net income of $11.9 million in the same period last year. Despite these challenges, the stock has shown remarkable momentum, delivering a 276% return over the past six months. Unlock more insights and 12 additional ProTips with an InvestingPro subscription.

The company has also established a strategic partnership with Consensys, which it describes as the world’s largest Ethereum software company.

In other recent news, SharpLink Gaming, Inc. announced significant developments involving substantial financial transactions and shareholder decisions. The company entered into securities purchase agreements with global institutional investors, raising $400 million through a registered direct offering priced at $21.76 per share. This move is expected to boost SharpLink’s Ethereum holdings to over $3 billion, considering their current assets and pending ATM proceeds. Additionally, SharpLink secured another $200 million through a separate registered direct offering at $19.50 per share, with the funds aimed at further expanding their Ethereum treasury to exceed $2 billion in value.

In another development, SharpLink Gaming’s shareholders approved amendments to the company’s equity structure. This includes an increase in the number of authorized shares of common stock from 100 million to 500 million, as noted in a recent SEC filing. The decision was finalized following a special meeting conducted via webcast. These recent activities reflect SharpLink Gaming’s strategic financial and structural adjustments in response to market opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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