Ethereum Dips on SharpLink’s $3.3B ETH Treasury Amid Q2 Loss

Published: 2025-08-16 11:39:15 |

Ethereum price slipped 2% to $4,457 after SharpLink Gaming reported a $103.4 million net loss in Q2, even as its ETH treasury swelled to 728,804 ETH (≈$3.3 billion). Since June, SharpLink has raised $2.6 billion for its Ethereum-focused strategy, staking nearly all ETH and earning 1,326 ETH in rewards. High-profile hires—including Ethereum co-founder Joseph Lubin as chairman and ex-BlackRock executive Joseph Chalom as co-CEO—underscored the pivot. Revenue fell 30% year-on-year to $0.7 million, with gross profit at $0.2 million. An $87.8 million non-cash impairment on liquid staked ETH (valued at $2,300 per ETH under U.S. GAAP) drove most losses. SharpLink stressed no ETH was sold. Shares tumbled 15% to $19.85, while the broader market saw $169 million in futures liquidations. Ethereum’s technical outlook remains mixed. ETH trades near $4,405 within an ascending channel. Key support stands at $4,350–$4,400 and $4,170; resistance lies at $4,785 and the $5,000 psychological level. RSI at 44 and a weakening MACD indicate fading bearish pressure. A close above $4,450 could signal renewed upside, while a drop below $4,170 risks targeting $3,950.

Bearish

SharpLink’s hefty Q2 loss and non-cash impairment have failed to buoy market sentiment despite a $3.3 billion ETH treasury. The 15% tumble in SharpLink’s shares and $169 million in futures liquidations signal investor caution. Technically, Ethereum sits at critical support levels ($4,350–$4,400 and $4,170), and a breach could trigger a deeper pullback toward $3,950. While staking rewards and leadership hires suggest long-term upside, near-term revenue declines and accounting losses weigh on momentum, making the outlook bearish for traders. A similar pattern emerged when other treasury-focused firms reported impairments, prompting sharp sell-offs before longer-term recoveries. In the short term, traders may stay cautious, while long-term holders will monitor ETH accumulation, staking yields and technical confirmations above $4,450 for signs of renewed bullish strength.