SharpLink Gaming's stock dropped nearly 15% following the announcement of disappointing Q2 earnings, which revealed a net loss of $103 million compared to a net income of nearly $12 million in the same quarter last year. The company's revenue fell by 30% to $1.4 million, leading to a gross profit of only $0.3 million—a 50% decrease from last year. This marked SharpLink's first earnings report since pivoting to a strategy focused on Ethereum. Factors contributing to the substantial loss include an $87.8 million non-cash impairment loss linked to its LSE holdings and $16.4 million in stock-based compensation due to an advisory agreement with blockchain firm Consensys. Additionally, Ethereum's price dropped below $4,400 amidst market uncertainties, compounding the impact on SharpLink, which currently holds 728,804 ETH worth approximately $3.23 billion. As Ethereum’s price fluctuations continue to affect the market, analysts are closely monitoring the situation.

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