SharpLink Gaming’s Ethereum Treasury Makes $723 Million Profit

SharpLink Treasury

SharpLink Gaming, Inc. (Nasdaq: SBET), once a humble online gaming marketing company, has emerged as a crypto powerhouse with a bold move to an Ethereum-focused fund management strategy. On September 12, 2025, the company announced unrealized gains in excess of $723 million on its ETH holdings, a windfall driven by Ethereum’s strong price appreciation and staking rewards. SharpLink, dubbed the “Ethereum Micro Strategy,” holds over 0.4% of the circulating ETH supply.

SharpLink’s treasury update, shared via press release and on-chain disclosures, shows a staggering $723 million in unrealized gains as of September 12, 2025. This figure comes from the appreciation of ETH holdings since buybacks began in June, supported by staking yields. Key highlights:

• ETH holdings overview: 521,939 ETH, purchased at an average price of around $2,100 per ETH (combined from purchases), currently worth $1.67 billion at $3,200/ETH.

• Profit breakdown: About $650 million from price appreciation (ETH up about 52% since June low) + about $73 million from staking rewards and performance.

• A $176 million ETH purchase last week (September 2) added another 55,000 ETH, temporarily pushing ETH holdings past the $3.6 billion market cap mark before a minor correction.

Ethereum is the Ultimate Treasury Asset

SharpLink's pivot, announced in May 2025, ditched gaming in favor of ETH as its "primary reserve asset," appointing Ethereum co-founder Joe Lubin as chairman.

CEO Rob Phythian defines this as “institutional adoption of Ethereum,” using ATM funding rounds ($425 million) to buy in without dilution. Staking not only secures the network but also generates “original yield,” turning holdings into a compounding machine. This “ETH strategy” has generated $723 million in paper profits, but sustainability depends on ETH’s utility in RWAs and L2s. With a planned issuance of 1 million ETH (about $3.2 billion), SharpLink is aiming for 1% of the supply, but regulatory approval (e.g., an ETH ETF) is a key driver.

Evaluation and Conclusion

SharpLink Gaming’s $723 million in unrealized ETH profits are a testament to bold treasury innovation that has transformed an underdog gaming company into an enterprise champion of Ethereum. As profits soar through staking and price appreciation, SharpLink Gaming competes with Galaxy’s SOL and Avalanche’s fundraising, signaling the merger of crypto with TradFi. But beyond the hype, sustainable yields and regulation will determine longevity — think of SharpLink as ETH’s MicroStrategy representative in this bull cycle.

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