SharpLink Shares Drop After Q2 Revenue Decline and Large Non-Cash ETH Impairment

Zinger Key Points

SharpLink reported Q2 revenue of $0.7 million, down from $1.0 million a year ago, and a net loss of $103.4 million.
The company launched its ETH treasury strategy in June, raising over $2.6 billion and acquiring 728,804 ETH.
See the 6X seasonal strategy set to target this fall’s biggest opportunities. Details here →

SharpLink Gaming Inc. SBET shares are trading lower Friday after the company reported a year-over-year decline in second-quarter sales and posted a significant net loss.

What To Know: Revenue for second-quarter 2025 came in at $0.7 million, down from $1.0 million in the same quarter last year, while gross profit fell to $0.2 million. The company's net loss for the quarter was $103.4 million, largely driven by an $87.8 million non-cash impairment on its liquid staked ETH holdings and $16.4 million in non-cash stock-based compensation related to a strategic advisory agreement with Consensys.

The quarter marked the launch of SharpLink's ETH treasury strategy, shifting its primary reserve asset to Ethereum. The company raised over $2.6 billion through capital offerings and acquired 728,804 ETH, nearly all of which has been staked, generating approximately 1,326 ETH in rewards to date. SharpLink also increased its ETH Concentration metric by 98% in just weeks, reflecting rapid accumulation. Co-CEO Joseph Chalom said, "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."

SBET Price Action: SharpLink shares were down 14.18% at $20.16 at the time of writing, according to Benzinga Pro.

Read Next: