Key points
- Net loss: SharpLink posted a $103.4 million net loss for Q2 2025.
- Cause: The result was driven largely by an $87.8 million non-cash impairment on liquid-staked ETH (LsETH); the company says it did not sell or redeem any ETH.
- Stock move: Shares fell ~10%–15% on the news (reports vary by venue and timestamp).
- Treasury: SharpLink says it now holds 728,804 ETH, with nearly all staked for yield.
What happened
SharpLink Gaming (NASDAQ: SBET) reportedx a Q2 2025 net loss of $103.4M, citing U.S. GAAP requirements that forced it to mark down its LsETH to the lowest price observed during the quarter (about $2,300). Management characterized the charge as non-cash, emphasized that the company hasn’t sold or redeemed its ETH, and disclosed that 728,804 ETH are held, with nearly 100% staked.
How the market reacted
At the open following the release, SBET fell about 10%, with some outlets noting the decline deepened toward ~15% intraday as traders digested the loss and softer top-line trends.
Why it matters
- Accounting vs. cash reality: Under current U.S. GAAP, certain crypto assets—especially liquid-staked tokens—can trigger sizable impairments when prices dip within a reporting period, even if holdings are unchanged. That dynamic can swing earnings without immediate cash impact. SharpLink’s filing explains this methodology and attributes the bulk of the quarter’s loss to the LsETH impairment rather than asset disposals.
- ETH-treasury strategy: The company says it raisedj more than $2.6B through capital-markets activity to build an ETH-centric treasury and is positioning itself as a corporate proxy for Ethereum exposure. Such concentration increases sensitivity to crypto-market accounting and price volatility.
What the company said
SharpLink reiterated confidence in Ethereum and framed7 the impairment as an accounting outcome rather than a strategic shift. It also pointed investors to its Form 10-Q filed Aug. 14 for additional detail on the quarter and the ETH-treasury approach.
What’s next
Investors will watch subsequent quarters for:
- The effect of ETH price levels on impairment/reversal dynamics;
- Progress in revenue and gross-profit trends from the legacy gaming/media lines;
- Any updates on staking yield, custody, and risk controls tied to LsETH.
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