SharpLink Gaming Plunges 15% Intraday After Q2 Earnings Release
Summary
- SharpLink Gaming plunged 15.50% after its Q2 earnings announcement.
- The Q2 net loss surged about 25,980% year-on-year to $103.4 million.
- 85% of the losses were explained as non-cash valuation losses from Liquid Staked Ethereum (LsETH).
Ethereum (ETH) reservation company SharpLink Gaming experienced a sharp decline the previous day.
According to the New York Stock Exchange on the 15th (local time), SharpLink Gaming closed at $19.85, plunging 15.50% from the previous day.
It is analyzed that investor sentiment weakened after massive losses were revealed in the Q2 earnings announcement released that day.
SharpLink Gaming recorded a net loss of $103.4 million in the second quarter. This marks a surge of about 25,980% compared to the same period last year ($500,000).
SharpLink stated that most of this quarter’s losses stemmed from accounting valuation losses related to Liquid Staked Ethereum (LsETH). Specifically, it explained, "85% of the losses ($87.8 million) occurred because LsETH was evaluated as a non-cash asset," adding, "All of the LsETH is currently being held as is." Under current U.S. accounting standards, LsETH is classified as an intangible asset and recorded at acquisition cost, with losses recognized based on the lowest price during the quarter.
SharpLink's Q2 revenue totaled just $700,000.
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