Sharplink’s Q3 Profit Jumps to $751 Million on Unrealized Ethereum Gains

Ethereum treasury company Sharplink (NASDAQ: $SBET), one of the largest publicly traded corporate holders of Ethereum (CRYPTO: $ETH), reported third-quarter net income of $751.4 million on Monday, driven primarily by gains on its ETH holdings, while revenue increased 24% to $13.5 million.

The reported profit was largely an accounting gain rather than a reflection of cash generated from operations. Unrealized gains on Ethereum accounted for $676.7 million of net income, reflecting changes in the fair value of the company's crypto holdings rather than cash proceeds. Despite the quarterly profit, Sharplink remains in the red for the first nine months of the year, reporting a net loss of $328.4 million. The loss included $268.8 million in impairment charges on crypto assets carried at cost and a $151.0 million unrealized loss.

According to the company's press release, net income totaled $3.45 per diluted share, compared with $104.3 million, or $0.62 per diluted share, in the same quarter last year. A $75.2 million realized gain, primarily related to ETH treasury activities, including liquid staking transactions, further contributed to the results.

Staking revenue increased 27% to $13.1 million from $10.3 million a year earlier, while affiliate marketing generated another $400,000. Quarterly revenue slightly exceeded analyst estimates. Selling, general and administrative expenses declined 8% to $11.0 million. Sharplink ended the quarter with $47.9 million in cash and cash equivalents, up from $28.5 million at the end of 2025, while total liabilities stood at $6.1 million.

Sharplink held approximately 892,708 ETH as of Sept. 30, with holdings increasing to 895,117 ETH by Nov. 2. Of the September total, 602,361 ETH consisted of native tokens, while the remainder was held through liquid staking and restaking tokens, which the company counts on an as-redeemed basis. Its total crypto assets were valued at approximately $2.1 billion at the end of the quarter.

The company completed a $200 million ETH staking deployment through Lido on Sept. 28, receiving wrapped staked ETH in return. It also began deploying capital through the Galaxy Sharplink Onchain Yield Fund, which launched in August with $125 million in commitments, including $100 million from Sharplink and $25 million from Galaxy Digital (NASDAQ: $GLXY).

Sharplink also made a strategic equity investment in Blockspace, an Ethereum infrastructure company focused on validation and staking.

CEO Joseph Chalom said the company is managing Ethereum as "a productive operating asset" rather than simply holding the cryptocurrency for potential price appreciation. He added that Sharplink's permanent capital base allows it to pursue longer-term treasury deployments.

Chairman Joseph Lubin, an Ethereum co-founder, said accelerating institutional adoption and the tokenization of financial assets position Sharplink to participate in Ethereum's growth through its actively managed treasury strategy.

Shares of Sharplink (NASDAQ: $SBET) were recently trading at $6.40, well below their 52-week high of $12.58.