Sharplink, Inc.

What they do

Sharplink operates two reportable segments: ETH Treasury Management, where it holds and stakes ETH to earn protocol rewards and potential price appreciation, and Affiliate Marketing, where it drives player acquisitions for sportsbook and online casino operators through its PAS.net network and state-specific websites. The company has raised $3.2 billion in new capital since launching the treasury strategy and reports holding approximately 886,881 ETH as of June 30, 2026. It is not registered as an investment company under the Investment Company Act of 1940.

Revenue drivers

• ETH Treasury Management — Primary revenue driver; generates income from staking rewards and potential ETH price appreciation; drove Q2 2026 revenue to $11.5M versus $0.7M in the prior-year quarter.
• Affiliate Marketing (PAS.net) — Performance-based customer acquisition for sportsbooks and online casinos; also operates direct-to-player, state-specific websites; historically the core business but now secondary to the treasury strategy.

Recent performance

For Q2 2026, total revenue was $11.5 million, up from $0.7 million in Q2 2025, driven by the ETH treasury strategy. Net loss was $394.3 million, compared to a net loss of $103.4 million in Q2 2025, largely due to a $321.0 million unrealized loss on ETH and a $76.1 million impairment charge on LsETH and weETH. Cash and equivalents totaled $56.2 million as of June 30, 2026, versus $28.5 million at year-end 2025. Annual 2025 net income was $-734.6 million on revenue of $28.1 million, after a net income of $10.1 million in 2024.

Strategy

Management's stated priority is to grow ETH holdings per share over time through a disciplined capital allocation program, using equity, equity-linked debt, or other financings to fund ETH purchases. The company delegates ETH to third-party validators for staking and participates in native and liquid staking programs. It also maintains a stock repurchase program to buy back stock where accretive. In Q2 2026, it completed a $75.0 million registered direct offering at a premium to net asset value, issuing shares and warrants, and has invested in ecosystem initiatives including EthLabs, Ethereum Institutional, and EthSystems.

Risks

• ETH price volatility — A substantial portion of assets is concentrated in ETH, so market price declines directly cause significant unrealized losses, as seen in Q2 2026.
• Regulatory classification as a security — If regulators or courts classify ETH or LsETH as a security, the company could face additional regulation or be required to register as an investment company.
• Impairment accounting on staked tokens — Impairment charges on LsETH and weETH reduce carrying value under U.S. GAAP and are not reversed even if market prices recover.
• Custody and third-party risks — Digital assets are subject to risks of theft, hacking, fraud, software vulnerabilities, or failures of third-party custodians and service providers.

Outlook

Management cites accelerating institutional adoption and growing onchain activity as signals of a 'new Ethereum era.' They plan to use their large ETH treasury scale to support protocol development, institutional adoption, and privacy infrastructure through investments in EthLabs, Ethereum Institutional, and EthSystems. The company intends to continue raising capital to increase ETH holdings, with no set maximum target for ETH accumulation.