SharpLink Q1 Revenue Rises to $12.1 Million as Ether Holdings Top 872,984 ETH

SharpLink, an Ethereum treasury strategy company, continued to expand its ETH holdings alongside first-quarter revenue growth this year. The company also said it plans to bolster its on-chain yield strategy for institutional clients.

Crypto media outlet BlockBeats reported on May 11 that SharpLink currently holds 872,984 ETH. Its cumulative staking rewards have increased to 18,800 ETH.

SharpLink said first-quarter revenue rose to $12.1 million from $700,000 a year earlier. It attributed the increase to the active operation of its ETH treasury strategy.

Selling, general and administrative expenses rose to $9.9 million from $1.1 million a year earlier. The company said the increase reflected costs tied to expanding institutional-grade ETH asset-management infrastructure, personnel and systems.

SharpLink posted a net loss of $685.6 million in the first quarter. The result reflected unrealized losses from ETH price swings and accounting impairment charges.

That included about $506.7 million in unrealized losses on ETH and about $191.7 million in impairment losses on LsETH. Offsetting that in part, the company recorded about $12 million in realized gains during conversions between ETH and LsETH.

SharpLink stressed that the loss was a book valuation loss under U.S. GAAP and did not mean it had sold ETH or suffered a permanent economic loss. The company said its ETH holdings did not decline despite the loss.

Chief Executive Officer Joseph Chalom said SharpLink is expanding beyond simple ETH staking into a broader range of on-chain yield strategies. Through the Galaxy SharpLink On-Chain Yield Fund, which it is launching with Galaxy, the company plans to allocate capital to DeFi yield strategies for institutional clients, he added.