SharpLink’s push into ETH yield strategies drives big revenue gain — but accounting losses weigh on results
SharpLink said it earned $12.1 million in revenue in Q1 2026, a sharp jump from $742,000 in the same quarter a year earlier, driven largely by an actively managed Ethereum treasury strategy the firm launched in June 2025. The Nasdaq-listed company (ticker: SBET) now positions itself as an institutional Ethereum treasury platform, offering public-market exposure to ETH plus yield.
Despite the revenue surge, SharpLink reported a substantial net loss of $685.6 million for Q1, compared with a $1.0 million loss a year earlier. The company attributed the deficit mostly to non-cash mark-to-market ETH losses and impairment charges during a soft quarter for Ethereum prices. Those accounting impacts included $506.7 million in unrealized ETH losses and a $191.7 million impairment charge tied to liquid-staked ETH (LsETH). SharpLink emphasized these were accounting losses only and did not reduce the actual number of ETH it holds.
On holdings and yield: SharpLink reported about 870,821 ETH at the end of March, which increased to 872,984 ETH as of May 4 — keeping it among the largest public Ethereum treasury holders. Since June 2025, the company said it has generated roughly 18,800 ETH in staking rewards through a mix of native and liquid staking programs. Earlier statements from SharpLink signaled plans to expand beyond basic staking into restaking, lending and other Ethereum-based yield tools.
CEO Joseph Chalom framed the strategy as steady and risk-aware: “We’re trying to hit singles and doubles,” he said, adding the company is not pursuing venture-capital-style returns but a lower-risk yield approach.
Partnership and fund plans: SharpLink and Galaxy Digital intend to launch the Galaxy SharpLink Onchain Yield Fund, backed by about $125 million in commitments. The fund is expected to deploy capital into selected on-chain opportunities and provide liquidity to emerging protocols using what the partners describe as institutional-grade strategies. SharpLink cautioned, however, that the fund may face delays, commitments may not be funded, and strategies could produce losses.
Wider trend: SharpLink’s shift reflects a broader movement among public companies to build ETH treasury models. For example, FG Nexus disclosed holding 47,331 ETH and said it plans to use staking, restaking and DeFi markets to generate yield.
Bottom line: SharpLink’s new ETH-focused approach is already producing meaningful revenue and staking rewards, but heavy non-cash accounting hits and market volatility underscore the risks and accounting quirks that come with large public crypto treasuries.
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