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Sharplink repositioned as an institutional‑grade ETH treasury platform (removing “gaming” from its identity) and says institutional ownership reached approximately 46% as it leans into Ethereum adoption and Layer‑2 use cases.
The company is scaling its treasury: it held 640,026 ETH (net fair value $1.9B) at 12/31/2025 and reported 868,699 ETH as of 3/1/2026, including a structured $200 million deployment into Linea with ether.fi and EigenCloud, while keeping treasury management in‑house.
Results show revenue jumped to $28.1M in 2025 (from $3.7M), but GAAP net loss was $734.6M driven by a $616.2M unrealized loss and a $140.2M impairment, which management says are non‑cash accounting marks that don’t reduce ETH units held.
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Sharplink Gaming (NASDAQ:SBET) executives used the company’s full-year 2025 earnings call to outline its strategy as an “institutional-grade ETH treasury platform,” while acknowledging that Ethereum price volatility materially affected reported GAAP results during the second half of the year.
Chairman Joseph Lubin, an Ethereum co-founder and founder and CEO of ConsenSys, framed 2025 as a “decisive moment” for Ethereum’s evolution, arguing that institutional adoption accelerated and that Ethereum has become “the financial backbone of on-chain markets.” Lubin said Ethereum and its Layer 2 ecosystem secure “approximately 60% of all stablecoins and tokenized real-world assets” and “over two-thirds of total DeFi value.”
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Lubin also cited examples of traditional financial firms building and launching products on public Ethereum during the latter half of 2025, including Fidelity’s tokenized money market fund and stablecoin “FIDD,” BNY Mellon’s partnership with Securitize for a tokenized AAA-rated CLO fund, and J.P. Morgan Asset Management’s tokenized money market fund. He said global banks including BNP Paribas, Santander, and ING began piloting stablecoin and tokenized deposit projects leveraging Ethereum and Layer 2 solutions.
On the technical front, Lubin pointed to Ethereum upgrades “Pectra” and “Fusaka,” describing improvements to validator performance and network capacity, as well as data availability and execution. He also discussed the intersection of AI and crypto, calling Ethereum a natural settlement environment for “agentic transactions,” and highlighted efforts including ConsenSys work with the “x402 protocol” for micropayments and participation in building “ERC-8004,” a registry and reputation system for agents.
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CEO Joseph Shalom said the company’s ETH treasury strategy is designed to be “deliberate and measured,” with an objective to accumulate ETH “through accretive means” and manage holdings within a “public company framework” emphasizing governance and transparency.
Shalom said institutional ownership reached “approximately 46% as of December 31st, 2025,” which he characterized as the highest institutional ownership percentage among Ethereum treasury companies. He described SharpLink’s approach as resting on three pillars:
Structural ETH accumulation focused on increasing “ETH per share” in an accretive manner
Productive treasury management intended to generate yield above native staking through partnerships and “innovation”
Public company governance and transparency supported by institutional controls and disclosures
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Management emphasized that the strategy is not “to accumulate ETH at all costs” or rely solely on ETH price appreciation. Shalom said the company evaluates staking, restaking, “selective DeFi,” and actively managed allocations through an “institutional risk management lens,” aiming to structure multi-year deployment arrangements while maintaining discipline around custody, liquidity, compliance, and risk controls.
As an example, Shalom described a deployment into ConsenSys’ Linea Layer 2 chain, saying the company allocated “$200 million” in partnership with ether.fi and EigenCloud to target ETH-denominated returns above standard staking rates. He said the structure is secured within Anchorage Digital Bank, which he described as the company’s regulated qualified custodian.
Shalom also said the company has built an in-house treasury management team rather than outsourcing to third-party discretionary managers, arguing that externalized management can create “high fees or revenue sharing” that becomes a “compounding value leak.” He said SharpLink’s internal model is intended to keep value generated “within the treasury” and aligned with shareholders.
Shalom said the company views itself as both “pro-cyclical and counter-cyclical,” noting that in strong markets it can access capital markets to grow ETH per share, while in weak markets its emphasis on yield and productivity becomes more important.
He said SharpLink raised “roughly $2.1 billion” in equity capital through its at-the-market facility in 2025. In the Q&A, management reiterated that equity issuance is governed by whether it is accretive to “ETH concentration per share,” stating it will raise equity “when doing so is clearly accretive,” and will not issue equity “to grow the balance sheet” for its own sake. The company said it has not decided to pursue borrowing against ETH holdings but maintains flexibility to do so “if it made sense.”
Shalom attributed some recent volatility in crypto markets to the “ripple effects” of liquidations and deleveraging on “October 10th,” which he called the largest deleveraging event in the industry’s history, adding that it can take “months or even up to 2 quarters” to unwind.
On regulation, Shalom cited the passage of the “GENIUS Act” and said the company is monitoring progress around the “CLARITY Act” and related market structure legislation. He said clearer definitions could reduce uncertainty for public companies, asset managers, and regulated intermediaries, while also suggesting regulatory ambiguity has historically been a greater gating factor for institutions than market volatility. In response to an analyst question, he said he would not predict timing but expressed confidence the CLARITY Act could pass, and added that the SEC and CFTC have indicated they are working together and could potentially address some issues through rulemaking.
Shalom also noted a branding change, saying the company updated its branding and digital presence and removed “gaming” from its corporate identity to reflect its focus on Ethereum and digital asset treasury management.
CFO Bob DeLucia reviewed full-year 2025 results and balance sheet figures, referencing the company’s Form 10-K filed with the SEC. As of December 31, 2025, he said SharpLink held “640,026 ETH” with a “net fair value of $1.9 billion,” plus “204,409 LsETH” with a cost value of “$501 million.” He added that subsequent to year-end the company’s combined ETH holdings increased to “868,699 ETH” as of Monday, March 1, 2026, comprised of “604,618 ETH,” “208,893 as-if converted LsETH,” and “55,188 as-if converted WETH.”
Revenue for 2025 was “$28.1 million,” up from “$3.7 million” in 2024, which DeLucia attributed to the company’s ETH staking strategy. He said staking revenues increased to “$15.3 million” in the fourth quarter from “$10.3 million” in the third quarter, a nearly 50% increase, and noted the growth occurred even as ETH market prices were falling.
DeLucia also reported a “net realized gain” of “$55.2 million” for 2025 related to the conversion of ETH into LsETH and redemptions in the fourth quarter. However, he said the company recorded a “$616.2 million unrealized loss” at December 31, 2025 due to deteriorating ETH market conditions in the second half of the year, as well as a “$140.2 million impairment charge” related to the lowest pricing of LsETH.
SG&A expenses were “$42.3 million,” up from “$5.7 million” in 2024, which DeLucia said reflected costs incurred implementing the ETH treasury strategy. Net loss for 2025 was “$734.6 million,” compared with net income of “$10.1 million” in 2024, driven primarily by the impairment charge and unrealized loss, partially offset by the realized gain.
DeLucia emphasized that impairment and unrealized losses reflect market pricing under current U.S. GAAP and “do not represent realized economic losses” on the ETH position, nor do they reduce the number of ETH units held. Cash on hand was “$28.5 million” at year-end 2025, compared with “$1.4 million” at year-end 2024, and the company held “$1.9 million in USDC stable coins” as a financial asset.
In Q&A, management said native staking remains the baseline, and Shalom stated the company has been staking “nearly 100%” of its ETH since the strategy’s inception. Asked about differences between native and liquid staking yields in the fourth quarter, Shalom said the company had not disclosed that and that part of the quarter was still in deployment, adding that the company may provide more disclosures once it reaches a “steady state” and views returns as a “portfolio of allocations.”
Shalom also said SharpLink is evaluating a pipeline of “almost 12 different protocols and opportunities,” and that due diligence typically takes “at least two months,” including assessments of smart contract risk, counterparty risk, liquidity risk, and in some cases de-pegging risk, along with coordination with custodians to support deployments within a qualified custody framework.
Looking into 2026, management said it plans to move “further along the efficient frontier” to generate additional yield above staking, while maintaining discipline around counterparty controls, operational protections through regulated custodians, liquidity parameters, and regulatory considerations.
SharpLink Gaming, Inc operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company’s sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers.
The article “Sharplink Gaming Q4 Earnings Call Highlights” was originally published by MarketBeat.