SharpLink posted a $1.08 billion net loss for the six months ended June 30, a swing driven almost entirely by the falling value of its Ethereum holdings. The loss includes $827.7 million from an unrealized decline in ETH value and $267.8 million from impairments of LsETH and weETH, the company said.
The size of the loss
The six-month loss is 934.3% above the roughly $104.4 million recorded a year earlier. That's a massive jump, and it reflects how quickly the crypto market turned against the company's treasury strategy.
SharpLink launched its ETH treasury strategy on June 2, 2025. By the end of June, the market had already moved enough to force the company to write down a big chunk of its digital assets.
What SharpLink holds
As of Aug 3, SharpLink held 888,938 unencumbered ETH-equivalent units. That breaks down to 634,255 native ETH, 181,748 ETH from LsETH, and 72,935 ETH from weETH. With ETH trading at $1,916.57 as of Aug 10, that count carries an illustrative gross mark of roughly $1.7 billion.
The company also had $56.2 million in cash and cash equivalents at June 30. Its common shares increased 10.3% to 216.98 million at June 30 from 196.71 million at the end of 2025.
The treasury strategy
In June, SharpLink raised about $75 million gross by selling 10,013,351 shares with warrants at $7.49 per package. Part of the proceeds went to buying 10,000 ETH for about $16.1 million. The company also repurchased 2.13 million shares.
That's a notable move — buying ETH while also buying back stock. But the timing didn't help. The ETH purchase came just before the market slid, and the impairments followed.
Liquidity and risk
SharpLink estimates that a material portion of its staked ETH could be withdrawn and converted to cash in about 30 days. The entire staking portfolio would take about 90 days to convert.
The company warns that stressed markets could impede sales or force unfavorable pricing. Liquidity depends on conversion time and price, which means the actual cash realized could be far below the current mark.
That's the open question: how much of that $1.7 billion gross mark will actually turn into cash, and at what price. The next few months will show whether the 90-day conversion window holds up.
