SharpLink Gaming has seen a downward trajectory in its share value. The treasury-focused firm, supported by Ethereum co-founder Joseph Lubin, recently reported a net loss of $103 million for the second quarter of 2025. The announcement caused the company’s shares to fall on Friday morning. Despite the loss, SharpLink’s large Ethereum (ETH) holdings and staking strategy continue to make it a significant player in the digital asset market. SharpLink Gaming Q2 Losses Linked to ETH Price Drop According to the announcement, most of SharpLink’s reported loss, $87.8 million, was as a result of non-cash impairment on its liquid staked ETH holdings. Under Generally Accepted Accounting Principles (GAAP), companies must record their assets at the lowest price they traded at during the quarter. ETH reached a low of $2,300 in the second quarter, which caused the paper loss. Following its latest earnings report, SharpLink’s shares fell about 10% on Friday morning. The shares dropped to $21.15 from Thursday’s closing price of $23.49, according to market data. This situation is part of a larger trend where companies with significant investments in cryptocurrencies face financial volatility. In March, Coinbase reported substantial losses in its stock value as the crypto market declined. This highlights how even major players are affected by swings in crypto prices. SharpLink’s Ethereum Stash Outshines Q2 Losses These losses recorded in Q2 do not reflect the current value of SharpLink’s coin holdings. Ethereum, the second-largest crypto asset, has recently recovered and is trading above $4,500. SharpLink holds 728,804 ETH, which is now worth more than $3.3 billion at current prices. Almost all of this ETH is staked, generating rewards of 1,326 ETH, which is roughly $6 million so far. This comes as staking allows SharpLink to earn additional income while holding its ETH long term. Furthermore, the U.S.-based firm has increased its “ETH Concentration” by 98%. This measures how much coin the company holds relative to its potential total shares. Growing Market for Ethereum Treasuries Joseph Lubin, SharpLink’s chairman, emphasized that the company’s strategy focuses on generating value for shareholders through yield creation and careful management of capital. The company began adding Ethereum to its balance sheet in July and sees the digital coin as an important part of the decentralized economy. It also wants to stand out from other public companies by using this strategy. Reportedly, the total market value of companies holding Ethereum on their balance sheets has now surpassed $10 billion, reflecting a growing trend in digital asset treasuries. BitMine Immersion Technologies, which recently added 317,000 ETH , valued at about $4.9 billion, to its stash, is leading this trend. Nevertheless, SharpLink’s aggressive accumulation, staking, and management of ETH place it among the top holders of Ethereum among publicly traded companies. The post SharpLink Gaming Faces Q2 Loss, but Maintains Strong ETH Holdings appeared first on TheCoinrise.com .
