SharpLink Gaming's stock plummeted nearly 15% after reporting a net loss of $103 million for Q2 2025, contrasting sharply with a $12 million net income in the same quarter last year. The company's revenue also saw a significant drop of 30%, totaling $1.4 million. The declines are attributed to a $87.8 million non-cash impairment loss on its LSE holdings and stock-based compensation linked to a strategic advisory agreement with Consensys. The drop in Ethereum's price, which fell below $4,400 amidst geopolitical uncertainties, further exacerbated the company's issues. SharpLink's shift to an Ethereum-centric strategy earlier in the year has intensified scrutiny following these disappointing results. As the firm holds 728,804 ETH worth over $3 billion, the volatility has placed added pressure on the company amid an ongoing market correction in cryptocurrencies. The firm’s executives clarified that the impairment loss reflects accounting practices rather than a direct operational failure, stressing the strategic positioning towards Ethereum investments.

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