SharpLink’s ETH Bet Drives 1,100% Revenue Surge in Q3

SharpLink Gaming’s third-quarter 2025 results demonstrate one of the most dramatic corporate turnarounds in recent financial history, driven almost exclusively by the company’s strategic Ethereum holdings. Total revenue surged to $10.8 million for the quarter ending September 30, representing an extraordinary 1,100% increase from the $0.9 million reported during the same period in 2024. This explosive growth was primarily attributed to the strong performance of SharpLink’s ETH treasury and its strategic deployment within the Ethereum ecosystem.

The company’s net income tells an even more compelling story, soaring to $104.3 million, or $0.62 per fully diluted share. This represents a complete reversal from the net loss of $885,000 recorded in Q3 2024. As of September 30th, SharpLink’s crypto assets stood at $3.0 billion, including 817,747 ETH comprising both native and liquid staking tokens. The company’s ETH position continued to grow, reaching 861,251 ETH by November 9, demonstrating the compounding effect of their treasury strategy.

Beyond its cryptocurrency holdings, SharpLink maintained a strong traditional financial position with $11.1 million in cash and $26.7 million in USDC stablecoins on its balance sheet. This combination of traditional and digital asset liquidity positions the company for continued strategic flexibility in both conventional and crypto markets.

According to co-CEO Joseph Chalom, SharpLink is establishing a new paradigm for publicly traded companies managing Ethereum treasuries. “SharpLink is pioneering a new model for publicly traded ETH treasury companies – one that marries the agility of an active asset manager with the transparency of a public company,” Chalom stated in the official press release. This hybrid approach allows the company to leverage the benefits of both traditional corporate structure and crypto-native asset management.

The company’s strategy extends beyond simple ETH accumulation to sophisticated yield-generation techniques. “Our ability to dynamically manage capital, pursue sophisticated compounding yield strategies, and partner with many of the most revered names in the Ethereum ecosystem, puts SharpLink in pole position as the Ethereum institutional supercycle accelerates,” Chalom explained. This forward-looking statement suggests the company views its current success as merely the beginning of a larger institutional adoption trend.

SharpLink’s approach represents a significant evolution in how public companies can leverage cryptocurrency holdings. Rather than treating ETH as a passive investment, the company actively manages its position through staking, restaking, and strategic partnerships, creating multiple revenue streams from a single asset class while maintaining the regulatory compliance expected of a Nasdaq-listed entity.

Throughout the quarter, SharpLink executed several strategic moves to strengthen its position as a leading Ethereum treasury operator. In August, the Board of Directors approved a substantial $1.5 billion stock repurchase program, under which 1.94 million shares were repurchased for approximately $31.6 million by quarter-end. This aggressive buyback program signals strong confidence in the company’s future prospects and current valuation.

The company also strengthened its leadership team with key appointments, bringing on Matthew Sheffield as Chief Investment Officer, Mandy Campbell as Chief Marketing Officer, and Michael Camarda as Chief Data Officer. These strategic hires indicate SharpLink’s commitment to building institutional-grade expertise across investment management, market positioning, and data-driven decision making.

Partnerships formed during the quarter further demonstrate SharpLink’s ecosystem approach. The Nasdaq-listed company collaborated with Superstate to launch tokenized SBET on Ethereum and revealed plans to deploy $200 million worth of ETH from its corporate treasury onto Linea, an Ethereum Layer 2 network developed by Consensys. This deployment will be managed through Anchorage Digital Bank, SharpLink’s custodian, and invested across staking, restaking, and AI-driven yield strategies on Linea’s zkEVM framework.

The company also completed a $76.5 million registered direct offering, priced at a 12% premium to its share price and above the net asset value of its ETH treasury. This successful capital raise at premium pricing indicates strong institutional investor confidence in SharpLink’s unique business model and treasury management strategy.

SharpLink’s planned $200 million ETH deployment on Consensys’ Linea network represents a sophisticated approach to yield generation in the Ethereum ecosystem. The strategy combines Ethereum staking rewards, EigenCloud restaking incentives, and Linea’s native yield programs to create diversified ETH-based returns. This multi-layered approach demonstrates the company’s commitment to maximizing returns while managing risk through diversification across different yield-generating mechanisms.

The use of Anchorage Digital Bank as custodian for this deployment underscores SharpLink’s focus on institutional-grade security and compliance. By partnering with regulated entities like Anchorage, the company maintains the transparency and security standards expected of public companies while operating in the rapidly evolving cryptocurrency space.

As SharpLink continues to execute its ETH treasury strategy, the company appears well-positioned to capitalize on what co-CEO Joseph Chalom describes as the “Ethereum institutional supercycle.” With $3.0 billion in crypto assets, growing ETH holdings, and a sophisticated approach to yield generation, SharpLink has established itself as a pioneer in corporate cryptocurrency treasury management, potentially setting a new standard for how public companies can leverage digital assets for both growth and income generation.