SharpLink reports $685M Q1 loss despite $2B Ethereum holdings amid crypto price drops

SharpLink Gaming posted a $685.6 million net loss in Q1 2026, driven mainly by unrealized losses from its $2 billion Ethereum holdings due to falling ETH prices. The company recorded $506.7 million in unrealized losses on ETH and $191.7 million on LsETH positions, though it gained $12 million from staking and conversions. Despite the loss, revenue surged to $12.1 million, largely from Ethereum staking, while operating expenses rose due to infrastructure and staffing investments. SharpLink continues its long-term Ethereum strategy and recently partnered with Galaxy Digital to launch a $125 million fund to expand its ETH reserves.