Sharplink Inc. (NASDAQ: SBET) reported a net loss of $685.6 million for the first quarter of 2026, compared to a $1.0 million loss in the same period last year, according to financial results released on May 11.

The Miami-based company, which operates as an Ethereum treasury platform, reported total revenue of $12.1 million in Q1 2026, up from $0.7 million in the prior year quarter. The increase was primarily driven by $11.5 million in staking revenue from the company's actively managed ETH treasury strategy launched in June 2025.

The significant net loss was largely attributed to non-cash items, including $506.7 million in unrealized losses on crypto assets due to ETH market conditions and a $191.7 million impairment charge on LsETH holdings. These accounting losses were partially offset by $12.0 million in net realized gains from ETH-to-LsETH conversions and redemptions.

As of March 31, 2026, Sharplink held approximately 870,821 ETH, which increased to 872,984 ETH as of May 4, 2026. The company's crypto assets totaled approximately $1.7 billion on a U.S. GAAP basis as of March 31. Cash and cash equivalents decreased to $16.9 million from $28.5 million at the end of 2025.

Selling, general and administrative expenses rose to $9.9 million from $1.1 million in the prior year quarter, reflecting investments in infrastructure and personnel to scale the company's treasury operations.

The company announced plans to establish the Galaxy Sharplink Onchain Yield Fund, an approximately $125 million initiative in partnership with Galaxy Digital, subject to definitive agreement. Since launching its Ethereum treasury strategy, Sharplink has generated 18,800 ETH in total staking rewards through native and liquid staking programs.