The latest quarterly financial report from SharpLink Gaming showed clear results for its bold strategy of investing in Ethereum, as it allocated nearly 100% of its reserves, approximately 728,804 ETH, with a total value estimated at around 2.6 billion dollars.
This move has made SharpLink one of the largest publicly listed holders of Ethereum globally in recent months, attracting massive institutional investments, to the extent that the head of digital assets at BlackRock joined after a career spanning over 20 years at his previous firm.
Operational losses and a radical shift
Before this shift, SharpLink's gaming business was struggling significantly; between the second quarter of 2024 and 2025, revenues dropped from about 10 million dollars to only 1 million dollars, while net losses skyrocketed from 5 million to over 103 million dollars.
To compensate for this collapse, the company relied on an Ethereum Staking strategy, where it staked almost its entire holdings, earning 1,326 ETH as passive income in the second quarter, equivalent to about 6 million dollars at the current market value. Although this amount does not cover all previous revenues, it highlights the advantages that Ethereum reserves may offer compared to Bitcoin.
Warnings of risks
Despite current success, Vitalik Buterin, the founder of Ethereum, warned against over-reliance on staking as a primary source of income, noting that the network's infrastructure can handle the technical requirements, but excessive borrowing could pose a long-term risk.
Today, SharpLink relies almost entirely on staking rewards and equity sales instead of operating revenues, which could make it vulnerable to instability in the future if market conditions change.
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