SharpLink Gaming reported first-quarter 2026 revenue of $12.1 million, marking a massive jump from $742,000 during the same period last year as the company’s Ethereum treasury strategy continued driving growth.
Summary
SharpLink’s Q1 revenue surged to $12.1 million, fueled largely by ETH staking and treasury-related income.
The company currently holds 872,984 ETH, making it one of the largest public Ethereum treasury firms behind BitMine.
SharpLink’s upcoming partnership fund with Galaxy Digital will test its broader DeFi yield strategy.
The Nasdaq-listed company said most of the revenue increase came from its actively managed Ethereum treasury strategy, which it officially launched in June 2025.
SharpLink now markets itself as an institutional Ethereum treasury platform, offering investors public-market exposure to ETH and blockchain-based yield generation under the ticker SBET.
ETH-related losses impact earnings
Despite the sharp revenue growth, SharpLink Gaming still reported a net loss of $685.6 million for the quarter, compared with a $1 million loss during the same period a year earlier.
The company said the losses were primarily tied to non-cash accounting impacts caused by Ethereum price weakness during the quarter. These included roughly $506.7 million in unrealized ETH losses along with a $191.7 million impairment charge related to LsETH holdings.
SharpLink emphasized that these accounting losses did not reduce the actual amount of ETH held in its treasury.
At the end of March, the company reportedly held approximately 870,821 ETH. By May 4, that figure had increased slightly to 872,984 ETH, keeping SharpLink among the largest publicly traded corporate holders of Ethereum today.
The company also disclosed that it has generated around 18,800 ETH in staking rewards since launching its treasury strategy through a combination of native staking and liquid staking programs.
Earlier comments from CEO Joseph Chalom suggested the company intends to gradually expand beyond basic staking into restaking, lending, and other Ethereum-based decentralized finance yield opportunities.
“We’re trying to hit singles and doubles,” Chalom said previously, framing the strategy as a relatively conservative yield-focused approach rather than a high-risk search for venture-style returns.
Galaxy partnership becomes next major test
SharpLink and Galaxy Digital are also preparing to launch the Galaxy SharpLink Onchain Yield Fund with roughly $125 million in expected commitments.
According to the company, the fund will allocate capital toward selected onchain liquidity and DeFi opportunities while seeking additional yield for shareholders.
Chalom said the partnership aims to combine institutional-grade risk management with carefully selected blockchain opportunities. However, the company also cautioned that the fund may face delays, funding commitments may not fully materialize, and DeFi strategies could still result in losses.
The broader market has recently seen several public companies adopt similar Ethereum treasury strategies. Firms including FG Nexus have also disclosed sizable ETH holdings while exploring staking, restaking, and DeFi-based yield generation models.
