SharpLink, a major holder of Ethereum, reports a loss and shares fall

• SharpLink has over 728 ETH in treasury
• Accounting loss of US$103 million impacts results
• Shares fall 10% after quarterly earnings release

SharpLink Gaming (NASDAQ: SBET), the company with the second-largest reserve of Ethereum among publicly traded companies, reported results second-quarter financial results, revealing ownership of 728.804 ETH, valued at approximately $3,3 billion at current prices. The announcement caused shares to drop approximately 10% at the opening of the market, trading at $21,15, compared to $23,49 at the previous close.

The company posted a net loss of US$103 million in the period. Of this total, US$87,8 million corresponds to non-cash losses related to the revaluation of its ETH holdings, as required by U.S. GAAP, which requires accounting for the lowest market price in the quarter—US$2.300 in the case of Ethereum. Despite this, the asset recovered and is currently trading above US$4.500.

With nearly 100% of its ETH reserves staked, SharpLink earned 1.326 ETH in rewards, equivalent to approximately $6 million. The company also reported a 98% increase in "ETH Concentration," a metric that calculates the amount of Ethereum held for every 1.000 potential shares, considering outstanding shares and convertible instruments such as options, warrants, and RSUs.

Joseph Lubin, co-founder of the Ethereum network and chairman of SharpLink, highlighted the company's strategy: "Ethereum is the trust layer for the decentralized economy, and SharpLink's aggressive accumulation, staking, and strategic management of ETH differentiates it from any other publicly traded company in the market. SharpLink is actively creating value for our shareholders through yield generation and smart capital deployment."

The combined market value of companies holding Ethereum on their balance sheets has surpassed $10 billion, driven by the growing use of digital asset treasury bonds. In this context, SharpLink reinforces its position as a leading cryptocurrency treasury company, leveraging ETH's appreciation and yield-generating potential to expand its presence in the digital finance sector.