Sharplink posts $394 million Q2 loss as ETH writedowns swamp revenue

Sharplink (NASDAQ; SBET) has reported a $394.3 million net loss for the second quarter of 2026 despite an elevenfold jump in its revenue. 

The loss on the company’s balance sheets is due to non-cash writedowns on its Ethereum treasury. Sharplink’s stock (SBET) has also taken a hit, falling 6%,

How did SharpLink lose $394 million?

Sharplink reported a $321.0 million unrealized loss on its Ether as ETH prices fell during the second quarter of 2026. The company’s earnings release also showed a $76.1 million impairment on two liquid staking tokens, LsETH and weETH. Both figures are accounting marks under U.S. GAAP. They cut the carrying value of the holdings on paper. 

The company noted the impairments are not reversed if the market later recovers, but they do not change how many tokens Sharplink actually owns. Realized gains offset part of the damage.

Sharplink is currently in a worse position than it was a year ago, when it reported a loss of $103.4 million. However, the almost $400 million figure is an improvement on the company’s Q1 2026, when Cryptopolitan reported a $685.6 million loss driven by the same fair-value mechanics on a bigger ETH drawdown.

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