SharpLink Gaming reported a net loss of $103 million for Q2 2025, significantly impacted by a paper loss related to its liquid staked Ether (LsETH) holdings. This marks a stark decline from a loss of only $500,000 in the same quarter of 2024, representing a staggering year-over-year change of -25,980%. The company's Ether treasury, valued at approximately $3.5 billion and holding 728,804 ETH, makes it the second-largest corporate holder after BitMine Immersion Technologies. Of SharpLink’s reported loss, $87.8 million, equivalent to 85%, is tied to LsETH impairment, which, according to a spokesperson, reflects accounting rules rather than actual sales or losses of ETH. As per US GAAP regulations, LsETH is considered a digital intangible asset and was recorded at cost, leading to non-cash impairment due to market fluctuations. Following this announcement, SharpLink's shares fell by 12.58% on the Nasdaq. The firm generated $700,000 in revenue during the same quarter.

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