Ethereum holder SharpLink posts $700 million net loss in 2025, hit by ETH valuation losses

SharpLink, an Ethereum (ETH) treasury strategy company, posted a massive net loss last year as the crypto market downturn took its toll.

According to Cointelegraph on the 10th (local time), SharpLink said in its 2025 earnings release that it recorded a net loss of about $734.6 million. Most of the loss stemmed from roughly $616.2 million in valuation losses on the 868,699 ETH it holds.

In addition, the company booked about $140.2 million in impairment losses incurred in the process of converting staked Ethereum.

Ethereum’s price saw sharp volatility in the second half of 2025. It climbed to as high as $4,829 in August, but after a market selloff in October it ended the year down around the $3,000 level.

Even so, SharpLink said it will stick to its ETH accumulation strategy. The company explained that “short-term market volatility showed up as accounting losses, but the long-term strategy is designed to withstand market cycles,” adding that its goal is to increase ETH holdings per share and maximize the productivity of its treasury assets.

SharpLink, whose board is chaired by Ethereum co-founder Joseph Lubin, shifted its business direction in June last year from a sports-betting marketing company to a digital-asset treasury strategy firm.

The company is pursuing a strategy to steadily increase ETH holdings per share, and in 2025 more than doubled that metric to 4.01 ETH per share from 2 ETH per share.

On the financial side, revenue surged. SharpLink’s 2025 revenue jumped about 659% to $28.1 million from $3.7 million a year earlier. Ethereum staking income also rose about 48.5% between the third and fourth quarters to $15.3 million. The company also reported about $55.2 million in gains from converting Ethereum into liquid staking tokens and redeeming them.

SharpLink raised a total of $3.2 billion in funding during 2025, establishing itself as the second-largest Ethereum holder among listed companies. The largest Ethereum-holding listed company is BitMine Immersion Technologies, which holds about 4.5 million ETH.

Meanwhile, SharpLink shares (SBET) have risen about 67% over the past year and are currently trading around $7.60. However, after surging about 1,000% in just a week following the company’s Ethereum treasury strategy announcement last May—rising to nearly $80—the stock has since retreated, falling more than 50% over the past six months.