Ether Treasury Sharplink’s Q3 Profit Soars 620%—but There’s a Catch

Modest Revenue Growth and Cost Controls

Nasdaq-listed ether treasury company Sharplink reported a more than sevenfold increase in third-quarter net income to $751.4 million. However, nearly most of the profit stemmed from unrealized gains on its cryptocurrency holdings rather than cash-generating operations.

According to financial results released Nov. 9, Sharplink recorded net income of $751.4 million for the three months ended Sept. 30. That compares with net income of $104.3 million, or 62 cents per diluted share, in the third quarter of 2025. The results show that Sharplink recorded $676.7 million in unrealized gains, representing approximately 90% of its reported net income. The company also recognized $75.2 million in net realized gains, primarily associated with Ethereum treasury activities, including liquid staking.

Beyond gains on its cryptocurrency holdings, Sharplink reported more modest revenue growth. Total revenue increased 24% year-over-year to $13.5 million, up from $10.8 million in the third quarter of 2025. Staking revenue, which accounted for roughly 97% of total revenue, climbed 27% to $13.1 million from $10.3 million.

The growth reflected the company’s efforts to generate income from its Ethereum treasury rather than relying strictly on asset appreciation.

Sharplink also reported an 8% decline in selling, general, and administrative expenses to $11 million, down from $12 million a year earlier, reflecting improved cost management during its institutional expansion. Cash and cash equivalents rose to $47.9 million as of Sept. 30, up from $28.5 million at the end of December 2025.

Sharplink CEO Joseph Chalom attributed the results to execution of the company’s treasury strategy.

“Our strong third-quarter performance reflects our progress in executing our Ethereum treasury strategy and further strengthening our institutional-grade treasury platform,” Chalom said in a statement.

Treasury Expansion and Staking Strategy

During the quarter, Sharplink continued expanding its cryptocurrency reserve, holding approximately 892,708 ether (ETH) as of Sept. 30. By Nov. 2, holdings had increased to roughly 895,117 ETH. The company valued its digital assets at approximately $2.1 billion at the end of September under U.S. GAAP.

As part of its yield strategy, Sharplink completed a $200 million ETH staking allocation through decentralized protocol Lido on Sept. 28. The transaction provided wrapped staked ETH (wstETH), enabling participation in staking rewards while maintaining exposure to decentralized finance opportunities.

The company also advanced its partnership with Galaxy Digital through the Galaxy Sharplink Onchain Yield Fund, launched in August with $125 million in initial commitments. Sharplink contributed $100 million and Galaxy Digital committed $25 million. The fund began deploying capital into onchain opportunities during the third quarter.

Additionally, Sharplink made a strategic equity investment in Blockspace, an Ethereum infrastructure company specializing in validation and staking services. Chalom said the initiatives align with the company’s goal to treat digital assets as yield-generating capital.

“These milestones reflect our belief that ETH should be managed as a productive operating asset rather than simply held for potential appreciation,” Chalom said.

Sharplink Chairman and Ethereum co-founder Joseph Lubin expressed confidence in long-term growth, pointing to institutional adoption of Ethereum and expanding blockchain-based financial infrastructure, including JPMorgan’s deposit token initiatives and asset tokenization.

Shares in Sharplink (SBET) finished the day down 1.76% at a price of $6.13, pushing the firm’s monthly loss to nearly 29%. Over the last year, SBET has fallen almost 49%.

Sharplink Gaming has staked another 39,319 ETH worth roughly $91 million, adding to a treasury that already ranks among the…