SharpLink Reports $394.3 Million Second-Quarter Net Loss on Ethereum Losses

SharpLink, an Ethereum treasury strategy company, reported a net loss of $394.3 million for the second quarter as falling cryptocurrency prices drove large unrealized losses.

According to a filing the company submitted to the US Securities and Exchange Commission on August 10, second-quarter revenue rose to $11.5 million from $700,000 a year earlier. Staking revenue accounted for $11.161 million of that total.

SharpLink recorded $321 million in unrealized losses on crypto assets measured at fair value. It also booked $76.1 million in impairment losses on crypto assets including LsETH and weETH. As a result, its net loss for the quarter totaled $394.3 million.

As of the end of June, SharpLink held about 886,881 ETH, including spot ETH and ETH-equivalent assets. As of August 3, that total had risen to about 888,938 ETH.

The company completed a $75 million direct offering in June and repurchased about 2.1 million shares during the second quarter. It also launched the $125 million Galaxy SharpLink On-Chain Yield Fund, with Galaxy as manager.