SharpLink, an Ethereum-focused treasury company, released its Q1 FY2026 earnings report on Monday, revealing that it now holds more than $2 billion worth of ETH despite recording major unrealized losses during the quarter.
The company reported a net loss of $685.6 million for the quarter ending March 31, 2026, compared to just $1 million in losses during the same period last year. The sharp decline was primarily linked to non-cash crypto-related accounting charges tied to its Ethereum treasury operations.
A significant portion of the losses came from Ethereum’s price correction during the first quarter, which resulted in approximately $506.7 million in unrealized losses. SharpLink also recorded an additional $191.7 million loss connected to its LsETH holdings. However, the company emphasized that these losses remain unrealized as it continues to maintain its long-term holding strategy.
Some of the negative impact was partially balanced by roughly $12 million in realized gains generated through ETH-to-LsETH conversions, staking incentives, redemptions, and rebate programs.
Despite the losses, SharpLink posted strong revenue growth. Quarterly revenue surged to $12.1 million, up from only $700,000 a year earlier. The majority of this increase came from the firm’s Ethereum staking operations, which generated around $11.5 million in revenue during the quarter.
Meanwhile, affiliate marketing revenue declined by 25%, dropping to $557,000 from $742,000 in the previous quarter.
The company also reported a major increase in operating expenses. Selling, general, and administrative costs climbed to $9.9 million, nearly nine times higher than the $1.1 million recorded a year ago. SharpLink explained that the rise was driven by investments in infrastructure, staffing, and systems supporting its growing Ethereum treasury platform.
As of March 31, 2026, SharpLink held approximately 870,821 ETH. By May 4, 2026, that figure had increased to 872,984 ETH, valued at roughly $2 billion based on current market prices.
Under U.S. GAAP accounting standards, the total value of the company’s crypto assets at the end of the quarter stood close to $1.7 billion.
Cash and cash equivalents declined from $28.5 million at the end of 2025 to $16.9 million by the end of the quarter. At the same time, SharpLink disclosed that it has accumulated around 18,800 ETH through staking rewards since launching its Ethereum treasury strategy in June 2025.
The company also improved its ETH-per-share metric from 2.0 at inception to 4.02 by the end of the quarter.
Additionally, on May 9, 2026, SharpLink signed a non-binding memorandum of understanding with Galaxy Digital for a proposed $125 million initiative known as the Galaxy SharpLink Onchain Yield Fund. The partnership aims to further expand the company’s Ethereum reserves.
Meanwhile, rival Ethereum treasury company Bitmine continues aggressively increasing its own holdings, recently purchasing another $61 million worth of ETH.
