Ethereum Drops 2% as SharpLink Posts $103M Loss, Holds 728K ETH
ETH down 2% after SharpLink Gaming reports $103m loss despite growing Ethereum treasury. SharpLink Gaming (SBET)....
Quick overview
- SharpLink Gaming reported a $103 million loss in Q2 despite increasing its Ethereum treasury to over 728,000 ETH valued at more than $3.2 billion.
- The company's revenue declined by 30% year-over-year to $0.7 million, largely due to an $87.8 million non-cash impairment related to Ethereum's price drop.
- SharpLink has not sold any of its liquid staked ETH and has earned 1,326 ETH in staking rewards since switching to ETH holdings in May.
- Ethereum's price has faced pressure, breaking below $4,500 and triggering significant futures liquidations, with technical indicators suggesting a cooling market.
ETH down 2% after SharpLink Gaming reports $103m loss despite growing Ethereum treasury. SharpLink Gaming (SBET) lost $103m in Q2 despite increasing its Ethereum treasury to over 728,000 ETH valued at more than $3.2b. The esports marketing company, which switched to ETH holdings in May, has almost all of its Ethereum locked into staking and has earned 1,326 ETH in yield since the strategy began. “We’ve scaled our ETH position in a highly accretive manner,” said co-CEO Joseph Chalom in the earnings report.
The company reported a net loss for the quarter and a 30% year-over-year revenue decline to $0.7m. The losses were largely due to an $87.8m non-cash impairment tied to Ethereum’s Q2 price low of $2,300 under U.S. GAAP rules. SharpLink has not sold any of its liquid staked ETH despite the accounting adjustment.
SBET shares fell 15% and closed at $19.85.
Ethereum Treasuries Growing
Ethereum treasuries are growing, with companies like SharpLink and BitMine Immersion (BMNR) holding large amounts. Together, Ethereum treasury companies now hold over 2.7m ETH, with BitMine leading at 1.2m ETH.
The strategy is similar to corporate Bitcoin treasuries but with the added benefit of staking yields for ETH. However, ETH price volatility introduces accounting complexities, as seen in SharpLink’s impairment charges.
Q2 numbers:
- 728,000 ETH held by SharpLink
- 1,326 ETH staking rewards earned
- $87.8m impairment loss
- 30% YoY revenue decline to $0.7m
Ethereum Price Targets $4,100
Ethereum’s price has also been under pressure. After failing to reclaim $4,700, ETH broke below $4,500 and triggered $169m in futures liquidations in 24 hours, according to Coinglass. $130m of that was long positions.
Technical indicators show a cooling market:
- RSI has dropped to its moving average.
- Stochastic Oscillator has exited overbought.
- 50-day EMA and SMA are near $3,500, which is a deeper support.Watch $4,100, if it fails further down. If it recovers to all-time high above $4,868 then $5,000 is possible.
ETH’s next move depends on technicals and investor confidence in treasuries.
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