v3.26.1
Operating Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Operating Segments

Note 13 – Operating Segments

 

The Company’s Chief Executive Officer serves as the Chief Operating Decision Maker (“CODM”) and evaluates the financial performance of the business and makes resource allocation decisions on the basis of its two different revenue sources. The ETH Treasury Management segment captures ETH-based yield generated by participating in Ethereum network’s staking protocol which is currently comprised of rewards received from native and liquid staking. The Affiliate Marketing segment is focused on performance-based customer acquisition services for leading sportsbooks and online casino gaming operators throughout the world. The CODM assesses financial performance by segment for revenue, operating profit (loss) and key operating expenses, as well as significant segments assets, as detailed below.

 

As a result, the Company operates two reportable segments under ASC 280, Segment Reporting, ETH Treasury Management and Affiliate Marketing.

 

ETH Treasury Management

 

In June 2025, the Company launched an ETH-centered treasury strategy and established ETH Treasury Management as a dedicated operating segment, delivering recurring, yield-based revenue and returns. The staking revenues are derived from the rewards the Company earns by actively participating in the Ethereum network’s proof-of-stake consensus mechanism. The Company delegates ETH holdings to validators that process and verify transactions on the blockchain. In return, the Company receives protocol-level rewards in ETH, typically proportional to the amount staked and the network’s overall activity and performance. Our ETH Treasury Management segment includes both native and liquid staking and restaking activities. In addition to the staking and restaking activities, the ETH Treasury Management segment receives monthly protocol incentives from ether.fi, Linea, and EigenCloud under the SPA in exchange for providing and maintaining TVL on Linea. Total ETH Treasury Management net loss from operations before income taxes was $(393,214) and $(1,077,546) for the three and six months ended June 30, 2026, respectively, and $(101,926) and $(101,926) for the three and six months ended June 30, 2025, respectively.

 

Affiliate Marketing

 

The Company’s Affiliate Marketing operations include performance marketing services, lead generation and data analytics. The Company focuses on delivering quality traffic and player acquisitions, retention and conversions to global casino gaming partners worldwide in exchange for a commission (cost per acquisition or portion of net gaming revenues) paid to the Company by the partners for the new players referred to them.

 

Total Affiliate Marketing net loss from operations before income taxes was $(61) and $(108) for the three and six months ended June 30, 2026, respectively, and $(1,470) and $(2,442) for the three and six months ended June 30, 2025, respectively.

 

 

SHARPLINK, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(dollar amounts in thousands, except share, per share data, and crypto asset tokens)

 

The following table presents significant segment assets regularly provided to and reviewed by the CODM for each operating segment as of the periods ended June 30, 2026:

  

   ETH Treasury
Management		   Affiliate
Marketing		   Total
Consolidated		 
Cash  $55,561   $634   $56,195 
Crypto assets at fair value   988,838    -    988,838 
Crypto assets at cost   369,148    -    369,148 
Other assets   1,792    119    1,911 
Total consolidated assets  $1,415,339   $753   $1,416,092 

 

The following table presents significant segment assets regularly provided to and reviewed by the CODM for each operating segment for the year ended December 31, 2025:

 

  

ETH Treasury

Management

  

Affiliate

Marketing

  

Total

Consolidated

 
Cash  $28,021   $518   $28,539 
USDC stablecoin   1,882                 -    1,882 
Crypto assets at fair value   1,899,683    -    1,899,683 
Crypto assets at cost   500,912    -    500,912 
Other assets   650    100    750 
Total consolidated assets  $2,431,148   $618   $2,431,766 

 

The following table presents significant segment revenues and expenses regularly provided to and reviewed by the CODM for each operating segment for the three months ended June 30, 2026 and 2025:

 

                         
   For the Three Months Ended June 30, 2026   For the Three Months Ended June 30, 2025 
  

ETH

Treasury

Management

   Affiliate
Marketing		  

Total

Consolidated

   ETH
Treasury
Management		   Affiliate
Marketing		   Total
Consolidated		 
Revenue from staking  $11,161   $-   $11,161   $29   $-   $29 
Revenue from affiliate marketing   -    367    367    -    668    668 
Total revenue   11,161    367    11,528    29    668    697 
                               
Gains and (losses) from operations                              
Realized gain on crypto assets, net   1,433    -    1,433    5,374    -    5,374 
Unrealized loss on crypto assets at fair value, net   (321,003)   -    (321,003)   (2,437)   -    (2,437)
Total gains (losses) from operations, net   (319,570)   -    (319,570)   2,937    -    2,937 
                               
Less:                              
Cost of revenues from affiliate marketing   -    258    258    -    488    488 
Salaries and benefits   2,523    143    2,666    119    741    860 
Stock-based compensation   3,055    -    3,055    16,379    298    16,677 
Bank fees   299    -    299    76    7    83 
Asset manager fees   772    -    772    378    -    378 
Accounting and Legal expenses   906    -    906    83    283    366 
Impairment of crypto assets at cost   76,093    -    76,093    87,813    -    87,813 
Other segment expenses (1)   1,157    27    1,184    44    321    365 
Segment net loss from operations before income taxes  $(393,214)  $(61)  $(393,275)  $(101,926)  $(1,470)  $(103,396)

 

(1)- other segment items included in Segment net loss include: professional fees, general and administrative, insurance, other income and expenses.

 

 

SHARPLINK, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(dollar amounts in thousands, except share, per share data, and crypto asset tokens)

 

The following table presents significant segment expenses regularly provided to and reviewed by the CODM for each operating segment for the six months ended June 30, 2026 and 2025:

 

                         
   For the Six Months Ended June 30, 2026   For the Six Months Ended June 30, 2025 
   ETH
Treasury
Management		   Affiliate
Marketing		   Total
Consolidated		   ETH
Treasury
Management		   Affiliate
Marketing		   Total
Consolidated		 
Revenue from staking  $22,662   $-   $22,662   $29   $-   $29 
Revenue from affiliate marketing   -    924    924    -    1,410    1,410 
Total revenue   22,662    924    23,586    29    1,410    1,439 
                               
Gains and (losses) from operations                              
Realized gain on crypto assets, net   13,438    -    13,438    5,374    -    5,374 
Unrealized loss on crypto assets at fair value, net   (827,667)   -    (827,667)   (2,437)   -    (2,437)
Total gains (losses) from operations, net   (814,229)   -    (814,229)   2,937    -    2,937 
                               
Less:                              
Cost of revenues   -    690    690    -    1,098    1,098 
Salaries and benefits   4,953    285    5,238    119    1,045    1,164 
Stock-based compensation   6,056    -    6,056    16,379    367    16,746 
Bank fees   627    -    627    76    9    85 
Asset manager fees   2,026    -    2,026    378    -    378 
Accounting and Legal expenses   2,157    -    2,157    83    657    740 
Impairment of crypto assets at cost   267,763    -    267,763    87,813    -    87,813 
Other segment expenses (1)   2,397    58    2,455    44    676    720 
Segment net loss from operations before income taxes  $(1,077,546)  $(108)  $(1,077,654)  $(101,926)  $(2,442)  $(104,368)

 

(1)- other segment items included in Segment net loss include: professional fees, general and administrative, insurance, other income and expenses.

 

Revenue by Geographic Location

 

Summarized revenues by country in which the Company operated for the three and six months ended June 30, 2026 and 2025 are shown below. All ETH Treasury Management revenue occurred within the United States.

  

   For the Three Months
Ended June 30, 2026		   For the Six Months
Ended June 30, 2026		 
United States   11,169   $22,728 
Rest of the World   359    858 
Revenue   11,528   $23,586 

 

  

For the Three Months

Ended June 30, 2025

  

For the Six Months

Ended June 30, 2025

 
United States   178   $408 
Rest of the World   519    1,031 
Revenue   697   $1,439 

 

The Company does not have material assets in foreign jurisdictions.