SharpLink Unleashes $2.6B ETH War Chest – 728,804 Staked, But At What Cost?

SharpLink Gaming, Inc. (Nasdaq: SBET) has emerged as one of the world’s largest corporate holders of Ethereum after executing a dramatic shift in its treasury strategy during the second quarter of 2025.

In its Q2 2025 results, the company reported that as of June 30, 2025, it held 728,804 ETH, nearly all of which is staked to generate yield.

Shift to Ethereum as Primary Treasury Asset

In early June, SharpLink designated ETH as its primary treasury reserve asset, describing the move as a calculated bet on Ethereum’s future as “the core trust commodity of the next-generation financial system.”

The company is acquiring ETH through disciplined capital formation and actively managing its holdings to maximize yield and compounding growth.

Chairman Joseph Lubin, co-founder of Ethereum and CEO of Consensys, said SharpLink’s aggressive accumulation and staking strategy distinguishes it from other public companies.

“Ethereum is the trust layer for the decentralized economy, and SharpLink is actively compounding value for our fellow stockholders through yield generation and intelligent capital deployment,” he said.

Leadership includes Co-CEO Joseph Chalom, a 20-year BlackRock veteran. Since launching the plan, SharpLink has raised over $2.6 billion via private investment in public equity (PIPE), at-the-market offerings, and registered direct offerings to fund ETH acquisitions.

Rapid ETH Accumulation and Staking Rewards

SharpLink reports it has staked nearly 100% of its ETH, generating cumulative rewards of approximately 1,326 ETH to date. The company’s ETH Concentration metric—a measure of accumulation efficiency—has surged 98% from 2.00 to 3.95 in just a few weeks. Management says this reflects a highly accretive scaling of holdings in a short timeframe.

Chalom notes that the strategy places SharpLink “at the center of a transformational opportunity in global finance and technology.”

Financial Results Impacted by Non-Cash Impairment

For the quarter ended June 30, 2025, SharpLink reported revenue of $0.7 million and gross profit of $0.2 million, or 30% of revenue.

Operating expenses totaled $2.3 million, with additional non-cash charges including $16.4 million in stock-based compensation linked to the Consensys advisory agreement.

The biggest factor in the quarter’s net loss of $103.4 million was an $87.8 million non-cash impairment on liquid-staked-ETH (LsETH) holdings, required under U.S. GAAP accounting rules due to a market price drop to approximately $2,300 during the period.

The company stressed that it has not sold or redeemed any LsETH assets.

Positioning for Long-Term Value Creation

Despite the accounting loss, SharpLink maintains that its Ethereum-focused strategy is designed for long-term shareholder value creation.

By combining capital market expertise, strategic partnerships, and active treasury management, the company said it seeks to leverage ETH’s role in decentralized finance to drive both yield and asset appreciation.

ETH Price Action

On Thursday, Ethereum hit its highest level since November 2021, with market activity showing a decisive tilt toward the second-largest cryptocurrency by market capitalization.

According to a CryptoQuant research note, the price of ETH hit $4,781.24 today—its highest level since November 2021 and just shy of its record peak.