Sharplink Reports Net Income of $751.443 Million, Boosted by Crypto Asset Gains
Key Facts
Sharplink reported net income of $751.443 million, or $3.45 per diluted share, for the three months ended September 30, 2026, compared with net income of $104.270 million and diluted earnings of $0.62 per share in the same period of 2025. The company said in its quarterly filing with the U.S. Securities and Exchange Commission that net income increased $647.174 million year over year. It attributed the rise primarily to increased realized and unrealized gains on crypto assets. Realized gains on those assets totaled $75.215 million during the quarter, while unrealized gains on assets measured at fair value reached $676.695 million. The company said unrealized gains reflect changes in fair value during the period and do not represent an increase in cash.
Total revenue in the third quarter rose 24.1% to $13.456 million, from $10.844 million a year earlier, with staking as its largest source. Staking revenue was $13.056 million, up 27.1% from $10.274 million in the corresponding period of 2025. Staking revenue accounted for 97% of total quarterly revenue, reflecting the significant reliance of operating revenue on this activity. By contrast, affiliate marketing revenue fell 29.8% to $400 thousand, from $570 thousand a year earlier. The company attributed the decline to weak iGaming market conditions, summer seasonality and the loss of customers related to regulatory changes in foreign markets.
Sharplink linked crypto asset gains, which totaled $751.910 million on a net realized and unrealized basis, to a recovery in the price of ETH during the quarter, as well as realized gains from redeeming LsETH and converting ETH to wstETH. It said ETH was priced at about $1,563 on June 30 and about $2,681 on September 30, 2026. Unrealized gains on ETH measured at fair value were $676.695 million, compared with $107.326 million in the third quarter of 2025. The company also recorded an impairment loss of $1.040 million on crypto assets carried at cost, compared with $6.950 million a year earlier. These items show how the revaluation of crypto assets drove up quarterly net income, while unrealized gains remain noncash, according to the company.
For the first nine months of 2026, Sharplink reported a net loss of $328.392 million despite revenue of $37.042 million. The period’s results included impairment losses of $268.803 million on crypto assets carried at cost. Net realized and unrealized losses on crypto assets totaled $62.318 million over the nine months, compared with net gains of $116.570 million in the corresponding period of 2025. The company said third-quarter gains did not fully offset losses from earlier periods of the year. The contrast between quarterly profit and the nine-month loss highlights the effect of the timing of crypto asset price moves and accounting treatment on reported results.
In a treasury update dated November 2, 2026, the company said its total ETH-equivalent exposure was about 895,117 units. The total includes 603,953 units of native ETH, along with the equivalent of 135,868 ETH through LsETH, 73,601 through weETH and 81,695 through wstETH. Sharplink estimated that cash and cash equivalents as of September 30, together with a portion of staking proceeds and equity financing, would cover its needs for the following twelve months. It said withdrawing a significant portion of staked ETH could take about 30 days, while withdrawing the entire staking portfolio could take about 90 days, depending on network conditions. In share trading, SBET shares closed at $6.24 on November 6, after closing at $6.49 on November 2, $6.59 on November 3, $7.15 on November 4 and $6.42 on November 5.
Sharplink is scheduled to hold a call to discuss its third-quarter results on November 9, 2026, at 8:30 a.m. Eastern Time, followed by a question-and-answer session. The company announced that a replay of the call would be available through November 23. The call follows the release of quarterly results that combined revenue growth with higher net income driven largely by crypto asset gains. Management’s details on staking performance and the components of ETH exposure will be among the topics related to the figures in the report. The company set the call date and replay availability in its results announcement.