SharpLink sees $734M unrealized loss but ETH staking hits new high

SharpLink reported a $734.6 million net loss for 2025, largely driven by unrealized losses tied to fluctuations in Ether’s market price, even as the company’s staking operations generated record rewards.

In its full-year financial results released Monday, the Miami-based firm said the loss was primarily the result of $616.2 million in unrealized losses on Ethereum (ETH) holdings and a $140.2 million impairment charge related to LsETH, partially offset by $55.2 million in realized gains from conversions and redemptions between ETH and liquid-staking assets.

Despite the accounting losses, SharpLink reported strong operational growth tied to its Ethereum treasury strategy. Since launching the program in June 2025, SharpLink has generated 14,516 ETH in staking rewards through a mix of native staking, liquid staking and restaking activities.

SharpLink positioned itself as an institutional Ethereum treasury platform last year, raising approximately $3.2 billion in capital and accumulating a large ETH reserve intended to produce long-term yield through staking and treasury management.

By the end of 2025, the company held 864,597 ETH, with holdings including both native ETH and assets converted from liquid-staking derivatives.

Chief executive Joseph Chalom said the results reflect the impact of short-term crypto market volatility rather than a change in the company’s strategy.

“Crypto markets move in cycles, but our strategy is consistent and designed to endure,” Chalom said in the earnings release.

SharpLink has sought to position itself as one of the largest public corporate holders of Ether, reporting that it had become the second-largest publicly traded holder of ETH as of March 2026.

The company also reported strong growth in staking revenue, with fourth-quarter staking income reaching $15.3 million, up nearly 50% from the previous quarter.

Management said it plans to continue expanding its staking and yield strategies in 2026 while focusing on increasing ETH per share, a metric used internally to track treasury productivity.