SharpLink creates income through staking Ethereum, with unrealized losses of ETH reaching 350 million dollars.

SharpLink Gaming, led by Ethereum co-founder Joseph Lubin, announced its third quarter financial report, with total revenue for the third quarter of 2025 rising to approximately $10.8 million and net profit significantly increasing to about $104.3 million, with an EPS of $0.62, mainly benefiting from the strong performance of the ETH treasury actively managed by SharpLink. Although SharpLink has transformed into an Ethereum strategic reserve company, it continues to operate its online gambling affiliate marketing business, which has turned from loss to profit this year.

SharpLink Q3 EPS reached 0.62 USD

SharpLink Gaming, led by Ethereum co-founder Joseph Lubin, announced its third quarter financial report, with total revenue rising to approximately $10.8 million in Q3 2025, and net profit significantly increasing to about $104.3 million, with an EPS of $0.62, primarily benefiting from the strong performance of SharpLink's actively managed ETH treasury. As of September 30, 2025, the company holds approximately 817,747 ETH, with total crypto assets valued at around $3 billion, a cash balance of $11.1 million, and USDC stablecoin valued at $26.7 million.

In August, the SharpLink Board of Directors approved a stock repurchase plan of $1.5 billion, allowing the company to repurchase up to $1.5 billion of common stock. As of September 30, 2025, the company has repurchased 1,938,450 shares of common stock at a cost of $31.6 million.

Co-CEO Joseph Chalom stated:

“The third quarter of 2025 is the first quarter in which we fully implement the SharpLink Ethereum treasury strategy, and the performance results clearly validate our execution strategy. So far, we have deployed almost all of our Ethereum holdings into efficient, yield-generating staking projects while maintaining strict risk management. In addition, we recently announced plans to responsibly enhance Ethereum DeFi yields by deploying $200 million worth of Ethereum onto Consensys's Linea platform through ether.fi and EigenCloud.”

Game alliance marketing has turned a profit this year.

SharpLink Gaming Inc. (stock code: SBET) is an innovative performance marketing company headquartered in Minnesota, USA, primarily providing data-driven user conversion solutions for the sports betting and online gambling iGaming industry.

From the financial report, it can be seen that although it has transformed into an Ethereum strategic reserve company, SharpLink continues to operate its online gambling affiliate marketing business, earning revenue through Performance Marketing, Lead Generation, and Data Analytics. The partners are global online casino gaming partners, and the company earns commission income by referring new players to these partners.

As can be seen from the table below, as of September this year, the net income generated by affiliate marketing is $42,865. While it may seem insignificant, it represents a significant improvement compared to the loss of $3.41 million during the same period last year.

Ethereum reserve business is still showing losses this year.

For the three-month and nine-month periods ending September 30, 2025, the pre-tax net income from the ETH asset management business was $105 million and $740,000, respectively. Since SharpLink announced its entry into the Ethereum strategic reserve only at the end of May, this quarter is the first complete quarter executing this strategy.

By the end of September, the ETH staking income was 10.3 million USD, while the ETH rewards from (Liquid Staking) can only be obtained when redeeming LsETH, and therefore are not included in the report.

In addition, most of the ETH held by SharpLink is staked to earn returns. According to the applicable accounting standards, LsETH must be recognized for impairment at the minimum price under ASC 350-30, resulting in significant losses on the books. As of the end of September this year, the LsETH valuation method recognized an unrealized impairment of $94.7 million, while the ETH that can be valued at fair value has an unrealized gain of $104.9 million.

Assets Quantity Type Applicable Accounting Standards Valuation Method From Now to Q3 Unrealized ETH 580,841 Cryptocurrency ASC 350-60 Fair Value 104.9 million USD LsETH 236,906 Digital Intangible Assets ASC 350-30 Recognized Impairment at Lowest Price -94.7 million USD

(Is staking ETH detrimental to financial reports? SharpLink posted a significant loss in Q2, and SBET's stock price dropped over 15%)

If we deduct the unrealized gains and losses of ETH ( 1.049 billion USD ) and LsETH ( - 94.7 million USD ), SharpLink's Ethereum reserve business is still at a loss of 9.38 million USD this year.

SharpLink mNAV has fallen to 0.82, with an unrealized loss of 350 million USD in ETH.

Due to the continuous sluggish performance of SBET's stock price, SharpLink has recently not bought ETH, but instead relies on staking to earn income, and its mNAV has dropped to 0.82. With the recent decline of ETH, the losses from its holdings of ETH have also expanded to 350 million dollars.

SharpLink official website data

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