Sharplink revenue climbs as treasury losses widen net deficit
The company reported first-quarter revenue of $12.1 million, a significant increase from $0.7 million in the prior-year period.
Sharplink (SBET), the sports betting technology provider, reported a substantial increase in first-quarter revenue alongside a widening net loss driven by its digital asset treasury strategy.
The company is shifting its operational focus toward an Ethereum-based treasury model, a transition that has led to increased volatility in its bottom line and a rise in infrastructure spending.
Revenue for the first quarter of 2026 rose to $12.1 million, compared to $0.7 million for the same period in 2025. However, the company reported a net loss of $685.6 million, compared to a $1.0 million loss in the first quarter of 2025. The deficit was primarily driven by $506.7 million in non-cash unrealized losses and a $191.7 million LsETH impairment charge.
Operating costs rose as the company invested in its treasury platform. Selling, general and administrative expenses increased to $9.9 million from $1.1 million in the prior-year period. Cash and cash equivalents fell to $16.9 million as of March 31, 2026, down from $28.5 million at the end of 2025.
Sharplink expanded its digital asset holdings to 875,776 ETH as of June 16, 2026, up from 872,984 ETH on May 4. The company's ETH concentration rose to 4.02 per share as of May 4, more than double the 2.0 per share recorded at the start of the treasury strategy in June 2025. Total staking rewards since inception reached 18,800 ETH as of May 4, compared to 14,516 ETH on March 1.
To bolster its capital position, the company priced a $75 million registered direct offering of 10,013,351 shares and warrants at $7.49 per unit. The offering price represented a 41% premium to the June 18, 2026, closing price of $5.29.
Sharplink also entered into a non-binding memorandum of understanding on May 9, 2026, to launch the Galaxy Sharplink Onchain Yield Fund. The $125 million initiative involves a $100 million contribution from Sharplink and $25 million from Galaxy.