SharpLink shares drop 12% on Q2 crypto impairment loss

SharpLink Gaming, an online gaming institution with the second-largest firm Ether treasury, announced a nett nonaccomplishment of $103 cardinal for the 2nd 4th of 2025, driven by a insubstantial nonaccomplishment from accounting for liquid staked Ether (LsETH). The nonaccomplishment marks a steep driblet from a $500,000 nonaccomplishment successful the aforesaid play of 2024 — a year-over-year alteration of -25,980%.

According to a Friday announcement, SharpLink present holds 728,804 Ether (ETH) worthy astir $3.5 cardinal astatine this writing. The lone publically traded institution with much ETH is BitMine Immersion Technologies, which holds a small much than 1.15 cardinal ETH worthy astir $5.1 billion.

Of SharpLink’s Q2 loss, $87.8 cardinal — oregon 85% — is related to the company’s LsETH. A SharpLink typical told Cointelegraph that the institution inactive has each its LsETH and that the impairment “reflects accounting rules, not a merchantability oregon nonaccomplishment of ETH.”

“Under US GAAP, LsETH is presently treated arsenic a integer intangible asset, which is recorded astatine outgo and taxable to impairment,” a SharpLink spokesperson said. “In Q2, the lowest marketplace terms of LsETH was $2300, triggering the $87.8M non-cash impairment.”

GAAP stands for “Generally Accepted Accounting Principles,” and is wide utilized by corporations for fiscal reporting. SharpLink posted gross of $700,000 for Q2 2025.

SharpLink’s shares trended downward connected the news. According to Google Finance, the company’s stock terms is down 12.58% connected the Nasdaq astatine this writing.

SharpLink stock terms connected Aug. 15. Source: Google Finance

Related: BitMine targets immense $24.5B rise arsenic SharpLink boosts Ether warfare chest

Ether treasury companies could spark DeFi summer

Ether treasury companies and exchange-traded funds are expected to enactment buying unit for ETH, with renewed terms predictions already emerging.

Multinational banking institution Standard Chartered has said ETH could deed $7,500 by the extremity of 2025. Market strategy and probe steadfast Fundstrat is adjacent much optimistic, saying ETH could scope $15,000 by year’s end.

Etherealize’s Vivek Raman says that contention betwixt Ether treasury companies could spark further enactment connected decentralized concern networks, starring to an institutional-scale DeFi summertime 2.0.

Ether has been rising since the ecosystem’s May Pectra upgrade. On that day, ETH had a terms of astir $1,811. At the clip of this writing, ETH’s terms is $4,382, a leap of 142% implicit the period.

Magazine: Dummies’ guide: Ethereum’s roadmap to 10,000 TPS utilizing ZK tech