Company maintains $3.5B Ether holdings despite non-cash hit
Shares of SharpLink Gaming fell more than 12% on Friday after the company reported a $103 million net loss in the second quarter of 2025, primarily due to a non-cash impairment linked to its liquid staked Ether (LsETH) holdings.
The online gaming firm, which is the second-largest corporate holder of Ether, disclosed in its Q2 filing that it now holds 728,804 ETH, valued at approximately $3.5 billion. Only BitMine Immersion Technologies holds more, with 1.15 million ETH worth about $5.1 billion.
Of the Q2 net loss, $87.8 million — or nearly 85% — stemmed from impairment related to LsETH. Company officials emphasized that the impairment was an accounting adjustment rather than an actual sale or loss of Ether.
“Under U.S. GAAP, LsETH is treated as a digital intangible asset, recorded at cost and subject to impairment,” a SharpLink spokesperson explained. “In Q2, the lowest market price of LsETH was $2,300, triggering the $87.8 million non-cash impairment.”
The steep decline contrasts sharply with the company’s $500,000 loss in Q2 2024, marking a staggering -25,980% year-over-year change. Despite the accounting setback, SharpLink reported $700,000 in revenue for the quarter.
Market reaction and ETH outlook
The financial update weighed heavily on investor sentiment. According to Nasdaq data, SharpLink shares dropped 12.58% following the announcement.
Still, the company’s massive ETH holdings continue to position it as a key corporate player in the Ethereum ecosystem. Industry analysts suggest that the rise of Ether treasury companies, combined with institutional adoption, could fuel long-term demand.
Standard Chartered has forecast ETH reaching $7,500 by the end of 2025, while research firm Fundstrat has set an even more bullish target of $15,000. Meanwhile, market analysts highlight that competition among Ether-holding firms could help trigger an institutional-scale “DeFi Summer 2.0.”
Ether has been on a strong upward trend since May’s Pectra upgrade, climbing from $1,811 to $4,382, a 142% increase over the period.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.