TenQ

The Sharplink story

Sharplink is an Ethereum treasury company whose central question is whether staking rewards and capital raising can increase ETH per share while funding its operations.

Sharplink stock reportTenQ Score 7/36 · every chart and check from its filings
  • $7.57share price, last close
  • $1.6Bmarket value
  • 7/36TenQ Score checks passed

The story in brief

  • Staking drives revenue. Revenue reached $11.5 million in the quarter to June 2026, compared with $0.7 million a year earlier, primarily because of the ETH treasury strategy.
  • ETH prices dominate earnings. The quarter to June 2026 produced a $394.3 million net loss, mainly reflecting $321.0 million in noncash unrealized losses and $76.1 million in LsETH and weETH impairments.
  • Capital flows both ways. In June 2026, Sharplink completed a $75.0 million offering, acquired approximately 10,000 ETH and repurchased approximately 2.1 million shares for $10.0 million.

What drives the business

  • Sharplink adopted ETH as its primary treasury asset in June 2025, making treasury management central to a business that also operates the PAS.net affiliate marketing network for sportsbooks and online casinos.
  • Its treasury totaled 888,938 ETH as of August 3, 2026, including native ETH and ETH equivalents held through liquid staking tokens.
  • Sharplink delegates ETH to validators to earn network rewards and participates in native and liquid staking, with ETH per share serving as management's central measure of progress.
  • Its December 2025 collaboration with Consensys Software, Ether.fi, Eigen Labs and Anchorage Digital Bank deploys treasury assets on Linea, earning contractual noncash incentives based on the value maintained on the network.
  • After the quarter to June 2026, Sharplink announced the Galaxy Sharplink Onchain Yield Fund with $125.0 million in committed capital, including $100.0 million from Sharplink, with Galaxy responsible for investment management.

What the price assumes

At $8.94 per share, the reverse DCF cannot measure an implied growth assumption because free cash flow and operating earnings are both negative, leaving future profits rather than positive cash generation to support the price.

Over the last twelve months, revenue grew 1496.7% to $50 million, but free cash flow was -$34 million.

The 38.7x price to sales ratio exceeds TenQ's under 2.5x check, while the -1.7% free cash flow yield falls short of its above 3% bar.

What could change the story

  • The ETH losses in the quarter to June 2026 did not reduce token holdings, but the LsETH and weETH impairment charges reduced carrying values and cannot be reversed for subsequent market recoveries.
  • Despite $0 in debt and $56.2 million in cash at June 30, 2026, negative free cash flow leaves operations dependent on available liquidity, additional capital or ETH disposals that could crystallize losses.
  • Share count rose 3908.1% over the last three years, and the June 2026 offering included warrants for up to 10,013,351 additional shares, making dilution important even alongside repurchases.
  • Liquid staking redemptions can face validator exit queues and other delays, while quoted token values may not reflect executable prices.
  • Changes in ETH's regulatory classification could impose additional requirements, and evolving custody and insolvency rules could cause unexpected losses or prolonged recovery proceedings.

What to watch next

  • The August 2026 release said Sharplink expected to fund the Galaxy fund's first investments in the coming weeks, making deployment amounts and the source of funding important disclosures in subsequent releases.
  • ETH concentration, which measures holdings per 1,000 assumed diluted shares, will show whether staking rewards, acquisitions and repurchases outpace share issuance and potential dilution.
  • Subsequent releases will show whether revenue covers more of the operating cost base, after $11.5 million of revenue and $9.1 million of general and administrative expenses in the quarter to June 2026, and whether free cash flow improves.

Sources

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