SharpLink logged a $686 million net loss for the first quarter of 2026, largely from unrealized losses on its Ethereum holdings. The collapse in ETH’s price from $3,354 to $2,104 between mid-January and March 31 triggered a $507 million accounting hit under GAAP rules. The company also launched a $125 million yield fund and saw revenue climb to $12 million from barely $1 million a year earlier.
How the Paper Loss Piled Up
SharpLink’s treasury held 872,984 ETH worth roughly $2.1 billion at quarter’s end. The 45% peak-to-trough slide in ETH’s value meant the company’s books showed a massive unrealized loss. GAAP accounting forced them to mark that treasury to market, dragging down the bottom line even though they still hold the coins. It’s a brutal reminder of how volatile assets play in corporate financials.
Staking Became the Bright Spot
Revenue jumped from under $1 million to $12 million as staked ETH operations kicked in. They’ve collected 18,800 ETH in staking rewards since starting this strategy last June. The treasury’s mix is now 66% native staking, 33% liquid staking, and 1% restaking. That growth didn’t stop the overall loss, but it showed where the business is heading.
Galaxy Partnership Now Live
The new $125 million on-chain yield fund is active now. SharpLink contributed $100 million from its staked ETH treasury while Galaxy Digital put in $25 million. Galaxy handles protocol selection and monitoring for the fund’s deployments. Their stock rose 43% last month, closing at $30.92 ahead of the announcement. The timing isn’t great given ETH’s recent slide, but the fund’s already operating.
SharpLink now holds $16.9 million in cash and 872,984 ETH. The company moves into Q2 with its treasury intact but under pressure to prove the yield fund can offset market swings.
