Ethereum Treasury Firm Sharplink Releases Q1 Earnings, Holds Over $2B In ETH

Sharplink, an Ethereum treasury company, announced its Q1 earnings results for FY26 on Monday, May 11. It revealed holding over $2 billion worth of ETH despite the massive unrealized losses.

Overview of Sharplink’s Q1 Earnings Report

For the quarter that ended March 31, 2026, SharpLink posted a net loss of $685.6 million. It represents a huge increase than the net loss of $1 million in the same period last year.

The company attributed the drop to mainly the non-cash crypto-related charges related to its Ethereum treasury business. The ETH price decline in the first quarter led to a humongous loss of $506.7 million.

In addition, a loss of $191.7 million was recorded for the LsETH holdings. However, the ETH treasury losses are unrealized as the company sticks to its HODL strategy. Part of these losses were offset by $12 million in realized gains from ETH-to-LsETH conversions, redemptions, incentives and rebates.

Meanwhile, quarterly revenue rose to $12.1 million up from $0.7 million a year ago. The company’s expansion of its Ethereum treasury strategy came into spotlighted via its staking operations.

Sharplink’s staked Ethereum generated $11.5 million in total revenue. However, affiliate marketing revenue declined 25% to $557,000 in the quarter compared with $742,000 in the previous quarter.

Moreover, selling, general, and administrative expenses increased 9x to $9.9 million compared with $1.1 million a year ago. The company said that the increase is due to investments in infrastructure, systems and staffing for its ETH treasury platform.

How Much Ethereum Does Sharplink Hold?

SharpLink held around 870,821 ETH as of March 31, 2026. The figure later increased to 872,984 ETH as of May 4, 2026, which is worth around $2 billion at current prices. Meanwhile, the value of crypto assets on the U.S. GAAP basis at the end of the quarter amounted to almost $1.7 billion.

The ending inventory of cash and cash equivalents fell from December 31, 2025, to $28.5 million to $16.9 million. On the contrary, the company reported it has amassed 18,800 ETH through staking rewards since it began its Ethereum treasury strategy in June 2025.

The firm also increased its ETH per share from 2.0 upon inception to 4.02 at the end of the quarter. On May 9, 2026, SharpLink inked a non-binding memorandum of understanding with Galaxy Digital for a proposed initiative.

It aims to create the Galaxy SharpLink Onchain Yield Fund, which is worth around $125 million. This fund aims to add more Ethereum to the existing reserve.

Whilst, Bitmine, the largest Ethereum treasury firm, has continued buying ETH with a recent $61 million acquisition.