Summary

  • SharpLink said third-quarter net income rose about 7.2 times from a year earlier to $751.4 million.
  • The company said the increase was driven mainly by $676.7 million in unrealized valuation gains on its Ethereum holdings and $75.2 million in cryptocurrency trading gains.
  • SharpLink said it holds about 892,708 ETH and digital assets valued at about $2.1 billion, while expanding asset management through Ethereum staking and an on-chain yield fund.

Forecast Trend Report by Period

SharpLink, a corporate Ethereum treasury company, posted a sharp increase in third-quarter net income this year as valuation gains on its holdings surged.

The Block reported on Nov. 9 that SharpLink announced third-quarter net income of $751.4 million. That was about 7.2 times the $104.3 million reported a year earlier.

The increase was driven mainly by $676.7 million in unrealized valuation gains on its Ethereum holdings. It also included $75.2 million in realized gains from cryptocurrency trading.

Third-quarter revenue rose 24% from the previous quarter to $13.5 million, slightly topping market expectations. Ethereum staking revenue accounted for $13.1 million, up 27% from the prior quarter. Cash and cash equivalents increased to $47.9 million from $28.5 million at the end of last year.

SharpLink said it held about 892,708 ETH as of Sept. 30. Under U.S. GAAP, the total value of its digital assets was about $2.1 billion.

The company is also continuing investments to expand returns on its Ethereum holdings. It recently completed a $200 million Ethereum staking allocation through Lido and began asset management through the $125 million Galaxy SharpLink Onchain Yield Fund.

CEO Joseph Chalom said the company is focused on maximizing the operating efficiency of its Ethereum holdings while maintaining its capital-allocation principles. Chairman Joseph Lubin, an Ethereum co-founder, added that SharpLink could benefit from the growth of the Ethereum ecosystem as institutional blockchain adoption expands.

Meanwhile, SharpLink shares traded at about $6.20 at the time of writing, little changed from the previous session. The stock is down about 36% so far this year.

Suehyeon Lee