SharpLink, Inc. (Nasdaq: SBET), one of the largest publicly traded Ethereum treasury companies, reported total revenue of $11.5 million for the second quarter of 2026, alongside a net loss of $394.3 million for the period. The company, which pivoted from its earlier focus as an online sports betting and fantasy sports operator, now follows a corporate treasury model — holding Ethereum on its balance sheet as a reserve asset — analogous to the strategy MicroStrategy pioneered with Bitcoin.

Staking revenue reached $11.2 million, reflecting the company's actively managed Ethereum treasury strategy, which launched in June 2025. SharpLink held approximately 886,881 ETH as of June 30, 2026, with holdings rising to about 888,938 ETH by August 3, 2026. The staking yield provides a revenue stream distinct from pure price appreciation, allowing the company to earn network rewards while maintaining its ETH position.

Second Quarter Financial Performance

Total revenue for the three months ended June 30, 2026, grew significantly from $0.7 million in the same period last year, driven largely by the ETH treasury initiative. Selling, general and administrative expenses rose to $9.1 million, compared with $2.4 million a year earlier.

SharpLink Reports $394M Q2 Loss as ETH Staking Revenue Reaches $11.2M SharpLink, the second-largest publicly traded Ethereum treasury company, reported Q2 revenue of $11.5 million, including $11.2 million from ETH staking, and a net loss of $394.3 million. The loss included… pic.twitter.com/wWT5eBsWhC — Wu Blockchain (@WuBlockchain) August 10, 2026

The net loss of $394.3 million compares with a net loss of $103.4 million in the second quarter of 2025. The increase was driven primarily by non-cash unrealized losses and impairment charges.

SharpLink recorded an unrealized loss of $321.0 million tied to Ethereum market conditions during the quarter. The company also recorded a $76.1 million impairment charge on its LsETH and weETH holdings — liquid staking tokens from Lido and ether.fi that represent staked ETH positions. SharpLink noted that these charges are non-cash accounting adjustments that do not reduce actual token holdings. However, impairment charges lower the carrying value of these assets under U.S. GAAP and are not reversed in subsequent periods, a treatment that crypto-holding public companies have flagged as understating the real-time value of digital asset positions when prices recover.

Cash and cash equivalents totaled $56.2 million as of June 30, 2026, up from $28.5 million reported at the end of December 2025. Crypto assets totaled approximately $1.4 billion on a GAAP basis at quarter's end.

Treasury Management and Ecosystem Investments

On June 23, 2026, SharpLink completed a $75.0 million registered direct offering comprising 10,013,351 shares of common stock alongside accompanying warrants. Proceeds from the offering helped fund the purchase of roughly 10,000 additional ETH tokens.

SharpLink also repurchased approximately 2.1 million shares during the quarter, spending approximately $10.0 million. Since launching its buyback program in August 2025, the company has repurchased 4,071,223 shares at a total cost of approximately $41.7 million.

Chief Executive Officer Joseph Chalom said the company remained "highly active across both treasury management and Ethereum ecosystem development" during the quarter, pointing to accelerating institutional adoption and expanding onchain activity as signs of broader momentum across the network.

Beyond treasury management, SharpLink announced anchor funding for three ecosystem organizations. EthLabs focuses on core protocol development and scaling for institutional adoption. Ethereum Institutional serves as a gateway connecting banks and asset managers to Ethereum, while EthSystems develops privacy and compliance infrastructure for regulated institutions.

Chairman Joseph Lubin, also Consensys CEO and an Ethereum co-founder, said the network is "moving from an era of proving the technology to putting it to work" as financial infrastructure.

SharpLink also joined the Russell 2000 and Russell 3000 indexes during the June reconstitution, a milestone that typically broadens exposure to index-tracking and passive investment flows. After the quarter closed, the company launched the Galaxy SharpLink Onchain Yield Fund, carrying $125.0 million in committed capital split between SharpLink and Galaxy Digital.