Q2 2026 reveals the accounting cost of SharpLink’s bet on Ethereum. Despite a strong increase in its turnover, the company posted a net loss of $394.3 million. This poor performance comes mainly from the drop in the price of ETH and its effects on the book value of the assets held. However, revenues are increasing thanks to staking despite this exposure to digital assets. The company is also continuing its Ether purchases and share buybacks.
In brief
- SharpLink posts a net loss of $394.3 million in the second quarter of 2026.
- The depreciation linked to ETH explains most of this heavy accounting loss.
- Revenues jump to $11.5 million, including $11.2 million from ETH staking.
- SharpLink continues to accumulate ETH despite its SBET stock dropping 6%.
SharpLink takes heavy loss linked to Ethereum
SharpLink reported a net loss of $394.3 million in the second quarter. The main factor comes from an unrealized loss of $321 million on its Ether. The decline in the price of ETH during the quarter reduced the carrying value of these assets under US GAAP rules. Added to this is a depreciation of $76.1 million on two liquid staking tokens, LsETH and weETH.
However, these accounting adjustments do not correspond to a direct outflow of cash. The company specifies in its press release also that a subsequent recovery of the market does not compensate for these depreciations in its accounts. However, they do not reduce the number of tokens held by SharpLink. The gains made therefore made it possible to attenuate part of the negative impact recorded during the quarter.
The loss remains higher than the $103.4 million recorded a year earlier. It nevertheless marks an improvement compared to the first quarter of 2026. The company then posted a loss of $685.6 million, after a sharper drop in the price of ETH. The second quarter therefore shows strong accounting pressure, but lower than in the previous quarter.
Revenues up sharply despite losses
Despite this loss, SharpLink generated $11.5 million in revenue between April and June. A year earlier, the figure was just $0.7 million. Rewards from ETH staking account for $11.2 million of this revenue. This progression reflects the active cash management strategy launched on June 2, 2025.
This strategy mainly produced its effects over a full quarter, compared to a few weeks previously. At the same time, spending has increased sharply. Selling, general and administrative expenses reached $9.1 million, compared to $2.4 million a year earlier. In particular, the company incurs higher costs related to personnel, conservation, insurance, legal and accounting.
The gap between revenues and costs therefore remains a central element of the published results. The increase in turnover is not enough to absorb the additional costs. However, revenue from staking now makes a much larger contribution. This development directly accompanies the increase in Ethereum assets held by the company.
SharpLink continues its ETH accumulation
The latent losses did not interrupt Ether purchases. SharpLink held approximately 886,881 ETH at the end of June, then approximately 888,938 ETH as of August 3. At the end of the quarter, this reserve was approximately $1.4 billion under GAAP standards. The company therefore continues to strengthen its exposure to Ethereum despite the pressure exerted on its accounts.
On June 23, the company finalized a $75 million direct offering. It sold just over 10 million shares with warrants at $7.49 per unit. A portion of the funds was used to purchase approximately 10,000 ETH, at an average price of $1,611. Furthermore, share buybacks continue with approximately 2.1 million shares during the quarter.
Since launching buybacks in August 2025, the company has canceled 4,071,223 shares for approximately $41.7 million. In June, Russell also included the stock in its 2000 and 3000 indices. After the results, SBET stock fell 6% to $6.05. Finally, SharpLink and Galaxy Digital Launch $125 Million Onchain Yield Fund.
This development extends the strategy around Ethereum assets. The company is providing $100 million from its staking treasury, while Galaxy Digital is providing $25 million and managing the fund. In the short term, upcoming quarterly financial results will now measure the effect of ETH variations on accounts and the ability of staking to support revenue.
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