SharpLink Gaming: Buy Rating, ETH Staking Revenue Surge

Font: Financial Modeling Prep  • May 11, 2026

SharpLink Gaming Gets Buy Rating as ETH Staking Revenue Rises, Despite Large GAAP Loss

Alliance Global Partners reiterated its Buy rating on SharpLink Gaming / Sharplink Inc. (NASDAQ: SBET) and raised its price target to $15.00 from $14.00 after the company announced plans for a Galaxy-managed onchain yield fund. Based on a share price of $7.76, the new target implies potential upside of about 93.3%.

SharpLink, now positioned as an institutional-grade Ethereum treasury platform, reported a sharp increase in first-quarter revenue. Total revenue rose to $12.1 million in Q1 2026, compared with $0.7 million in the same period last year. The increase was primarily driven by the company’s actively managed ETH treasury strategy, which launched in June 2025.

The company’s financial statements show that most of the quarter’s revenue came from staking. SharpLink generated $11.5 million in staking revenue and $557,000 from affiliate marketing, bringing total revenue to $12.058 million.

However, the strong revenue growth was offset by significant GAAP losses tied to Ether market volatility and accounting treatment for crypto assets. SharpLink reported a net loss of $685.6 million, compared with a net loss of $1.0 million a year earlier. The loss was driven mainly by a $506.7 million unrealized loss on crypto assets and a $191.7 million impairment charge related to LsETH, partially offset by a $12.0 million realized gain. The company said these unrealized losses and impairment charges do not represent realized economic losses on its ETH holdings or reduce the number of ETH held.

As of May 4, 2026, SharpLink held approximately 872,984 ETH in its treasury and had generated 18,800 ETH in total staking rewards since launching its ETH treasury strategy.

SharpLink is also seeking to expand beyond basic staking. On May 11, 2026, Galaxy Digital and SharpLink announced a non-binding memorandum of understanding to form the Galaxy Sharplink Onchain Yield Fund, a private vehicle that would deploy capital across decentralized finance liquidity protocols and other onchain yield strategies. The planned fund would have $125 million in commitments, consisting of $100 million from SharpLink’s staked Ethereum treasury and $25 million from Galaxy.

CEO Joseph Chalom described SharpLink’s strategy as accumulating ETH accretively, making it productive, and scaling that advantage over time. That strategy gives the company significant upside exposure to Ethereum and onchain yield opportunities, but it also leaves results highly sensitive to ETH price volatility, crypto accounting rules, regulatory risk, and the execution risk of new DeFi-focused investment structures.