Ethereum treasury firm Sharplink reported a steep annual loss after a volatile year for the cryptocurrency market, even as the company continued expanding its Ether holdings.
The company revealed on Monday that it recorded a $734.6 million net loss for 2025.
The loss was largely tied to a sharp decline in the value of Ether during the second half of the year.
Sharplink has built a sizeable crypto reserve since shifting its business model in 2025.
The firm maintains that its strategy focuses on navigating market cycles while gradually increasing Ether held per share and improving the long term productivity of its digital asset treasury.
Crypto losses tied to ether holdings
Most of Sharplink’s losses came from a $616.2 million paper loss on the 868,699 Ether it currently holds.
The decline reflects the drop in ETH prices during the latter part of the year.
Ethereum saw major swings across 2025, rising to $4,829 in August before the October market crash pushed prices sharply lower across the broader digital asset market.
By the end of the year, Ether was trading close to $3,000.
Sharplink also recorded a $140.2 million impairment charge linked to converting its staked Ether holdings.
Despite the accounting losses, the company said it plans to continue purchasing ETH as part of its treasury strategy.
Shift toward ethereum treasury model
Sharplink moved into digital assets earlier in 2025.
The firm, chaired by Ethereum co-founder Joseph Lubin, previously operated as a sports betting marketing company before pivoting to a digital asset treasury in June.
Since then, it has focused on increasing Ether relative to its share count and strengthening its role as a public Ethereum treasury company.
Sharplink said it more than doubled its ETH per share ratio during 2025, rising from 2 ETH per share to 4.01 ETH per share.
The company said that gradually raising this ratio remains central to its long term plan for shareholder value.
Revenue growth despite market decline
Even with losses tied to ETH prices, Sharplink recorded strong revenue growth.
Total revenue increased 659% year on year, rising from $3.7 million to $28.1 million in 2025.
Ethereum staking also generated additional income.
Staking revenue rose 48.5% between the third and fourth quarters to reach $15.3 million.
The firm also generated $55.2 million during the year from Ether to liquid staked Ether conversions and redemptions.
After raising $3.2 billion in funding in 2025, Sharplink became the second-largest publicly traded Ethereum holder.
It sits behind BitMine Immersion Technologies, which holds more than 4.5 million ETH, representing about 3.76% of the total supply.
BitMine has also faced heavy paper losses, with estimates reaching $8.8 billion after Ether dropped roughly 60% over the past six months.
Sharplink’s stock has been volatile.
Shares surged nearly 1,000% to almost $80 after the company announced its Ether treasury strategy in late May before falling following the business pivot.
SBET is now trading around $7.60. The stock remains up 67% in the past year but has fallen more than 50% over the past six months.
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