SharpLink Gaming's stock fell nearly 15% on Friday following the company's announcement of a $103 million net loss for Q2 2025, contrasting starkly with a nearly $12 million net income during the same quarter last year. This downturn coincided with Ethereum's price dipping below $4,400 amid geopolitical uncertainties. The revenue report indicated a significant decline of 30% year-over-year, with a gross profit drop of 50% from the previous year. Executives cited a major non-cash impairment loss of $87.8 million on LSE holdings and stock-based compensation linked to a strategic advisory agreement as contributors to the financial results. This earnings report marked the first since SharpLink pivoted to an Ethereum-focused strategy in May. As part of their assets, SharpLink currently holds over 728,000 ETH, worth approximately $3.23 billion. The company's challenges reflect larger market volatility, with Ethereum funds reportedly drawing $640 million in new investments over the past week before the price decline.

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