SharpLink Gaming, an online gaming company with the second-largest corporate Ether treasury, announced a net loss of $103 million for the second quarter of 2025, driven by a paper loss from accounting for liquid staked Ether (LsETH). The loss marks a steep drop from a $500,000 loss in the same period of 2024 — a year-over-year change of -25,980%.

According to a Friday announcement, SharpLink now holds 728,804 Ether (ETH) worth approximately $3.5 billion at this writing. The only publicly traded company with more ETH is BitMine Immersion Technologies, which holds a little more than 1.15 million ETH worth approximately $5.1 billion.

Of SharpLink’s Q2 loss, $87.8 million — or 85% — is related to the company’s LsETH. A SharpLink representative told Cointelegraph that the company still has all its LsETH and that the impairment “reflects accounting rules, not a sale or loss of ETH.”

“Under US GAAP, LsETH is currently treated as a digital intangible asset, which is recorded at cost and subject to impairment,” a SharpLink spokesperson said. “In Q2, the lowest market price of LsETH was $2300, triggering the $87.8M non-cash impairment.”

GAAP stands for “Generally Accepted Accounting Principles,” and is widely used by corporations for financial reporting. SharpLink posted revenue of $700,000 for Q2 2025.

SharpLink’s shares trended downward on the news. According to Google Finance, the company’s share price is down 12.58% on the Nasdaq at this writing.

Related: BitMine targets huge $24.5B raise as SharpLink boosts Ether war chest

Ether treasury companies could spark DeFi summer

Ether treasury companies and exchange-traded funds are expected to support buying pressure for ETH, with renewed price predictions already emerging.

Multinational banking company Standard Chartered has said ETH could hit $7,500 by the end of 2025. Market strategy and research firm Fundstrat is even more optimistic, saying ETH could reach $15,000 by year’s end.

Etherealize’s Vivek Raman says that competition between Ether treasury companies could spark further activity on decentralized finance networks, leading to an institutional-scale DeFi summer 2.0.

Ether has been rising since the ecosystem’s May Pectra upgrade. On that day, ETH had a price of roughly $1,811. At the time of this writing, ETH’s price is $4,382, a jump of 142% over the period.

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