Ethereum treasury firm Sharplink reported $751.4 million in third-quarter net income on November 9, according to its SEC filing. However, the same filing shows a $328.4 million net loss for the first nine months of 2026, highlighting the impact of cryptocurrency valuation swings despite rising staking revenue.
Quarterly Profit Driven by Unrealized Gains
For the quarter ended September 30, Sharplink earned $3.45 per diluted share. Net income reached $751.4 million, compared with $104.3 million in the corresponding 2025 quarter. The result included $676.7 million in unrealized crypto gains, primarily reflecting Ether market conditions, and $75.2 million from realized gains linked largely to treasury transactions. The company cautioned that unrealized gains do not represent cash proceeds.
Nine-Month Loss Despite Q3 Recovery
Sharplink’s SEC filing identifies $151.0 million in net unrealized losses across the nine months and $268.8 million in impairment charges on certain liquid-staking assets. These charges reduce asset carrying values without directly reducing token holdings, and under the company’s accounting treatment, subsequent market recoveries cannot reverse those impairments. The filing attributes the nine-month deficit mainly to crypto valuations and impairments. Previously, Blockonomi reported Sharplink’s $394.3 million second-quarter loss, including $321 million in unrealized declines, so the latest rebound failed to offset earlier losses through September.
Staking Revenue Climbs, Cash Flow Negative
Third-quarter revenue rose 24% year over year to $13.5 million. Staking contributed $13.1 million, up 27% from the comparable 2025 quarter, making it the principal source of revenue rather than token price gains. Selling, general, and administrative expenses fell 8% to $11.0 million. Across nine months, staking revenue reached $35.7 million, and the filing records 5,494 ETH in staking rewards earned during the quarter. However, operating activities consumed $25.1 million in cash during that period, as staking rewards arrive in ETH or liquid-staking tokens, not cash. Cash and equivalents totaled $47.9 million at September’s end, versus $28.5 million last December.
Treasury Strategy Expands
Sharplink announced a $200 million Lido staking allocation in August and confirmed completion on September 28, receiving wrapped staked Ether in return. It also launched a $125 million Galaxy onchain yield fund, committing $100 million alongside Galaxy Digital’s $25 million; the fund began deploying capital during the third quarter. Sharplink held 892,708 ETH on September 30 and 895,117 ETH by November 2. Its September crypto assets totaled roughly $2.1 billion under U.S. accounting rules. Management targets additional treasury returns, but the filing warns that crypto volatility can destabilize future earnings.
