SharpLink Reports $751 Million Q3 Profit After ETH's 71% Quarter, but Ether Now Trades 21% Below the September 30 Mark

What the 10-Q says

Source: SharpLink Form 10-Q, condensed consolidated statements of operations and MD&A.

The filing explains the jump in one line: net income rose "primarily reflecting the increase in net crypto asset realized and unrealized gains." In other words, the ETH price did the work. Staking, the part of the business that produces cash-like income, brought in $13.1 million.

The nine-month picture looks very different. For January to September 2026, SharpLink reports a net loss of $328.4 million and an operating loss of $325.0 million, even though revenue for the period tripled to $37.0 million (up 201.6%). The company had large losses on its ETH in the first half of the year, and a strong third quarter recovered only part of them.

Why one quarter can swing this much

Under the accounting rule SharpLink follows (ASC 350-60), directly held ETH is carried at fair value. The company says it uses unadjusted quoted prices on Coinbase, which it treats as its principal market. Every change in that price flows straight into net income. Liquid staking tokens it holds, such as LsETH, wstETH and weETH, follow a different rule. They are carried at cost less impairment, so price falls reduce their value on the books, but rises above the original cost are not recognised.

That mix has a practical result for anyone reading the headline number. A rising quarter for ETH produces a large paper profit. A falling quarter produces a large paper loss, and an impairment on the staking tokens is not written back up when prices recover.

Our check on the scale of the move uses Binance daily closes as a stand-in for the Coinbase price SharpLink uses. At 03:05 SGT the three venues we read quoted ETH within $0.24 of each other:

• June 30, 2026 close: $1,572.01
• September 30, 2026 close: $2,686.01
• Change in the quarter: +$1,114.00, or +70.9%
• 03:05 SGT November 10 price: $2,125.42 on Binance, $2,125.57 on OKX, $2,125.33 on Bitget
• Change since September 30: -$560.59, or -20.9%

The fourth quarter ends on December 31. If ETH were still at today's price on that date, the company would record a fair-value loss on its directly held ETH for the quarter. That is arithmetic about the reporting rule, not a forecast of where ETH goes.

Where the yield comes from

SharpLink calls its main business ETH Treasury Management. According to the 10-Q, it delegates ETH to third-party validators and also uses liquid staking through protocols such as Liquid Collective, ether.fi and Lido. Its custodians are Anchorage Digital Bank and Coinbase.

Two treasury moves in the filing are new since mid-year:

• A fund with Galaxy. In August SharpLink transferred 8,054 wstETH as a capital contribution to the Galaxy Sharplink Onchain Yield Fund, LP. The company measures that stake at fair value. The filing classifies it as Level 3, meaning there is no observable market price for the fund interest.
• A credit line it has not used. On September 21 SharpLink signed a Master Digital Currency Loan Agreement with Galaxy Digital LLC. The agreement lets it borrow dollars or digital assets, including ETH and LsETH, against collateral, with margin calls and the right for Galaxy to sell collateral if a call is not met. On October 14 it set up a segregated collateral account at Anchorage. As of the filing date, SharpLink had not borrowed under the agreement.

The company also has a share buyback programme of up to $1.5 billion, approved in August 2025. The 10-Q describes buybacks, capital raises and ETH purchases as decisions it makes "dynamically" based on their effect on ETH per share.

What this means for ETH traders

The headline profit is backward-looking. The $751 million describes a quarter in which ETH rose 71%. The market has since given back a fifth of the quarter-end price. For anyone trading ETH, the filing tells you more about the quarter that ended than about the one in progress.

Treasury companies are a source of supply and demand to watch. SharpLink says it may raise capital to buy ETH when terms are attractive and buy back shares when they are not. Its unused Galaxy credit line includes margin calls on collateral. The filing does not say when or whether it will draw on that line. If the line is ever used and ETH falls, margin calls could force collateral sales. Today there is no borrowing, so there is nothing to call.

Funding is calm. At 03:05 SGT, ETH perpetual funding was 0.0054% per 8 hours on Bitget and 0.0029% on OKX, both below the 0.01% default. ETH was down 4.85% over 24 hours on Binance. Leveraged longs are not paying a premium to hold the position. Our funding rates board shows the live numbers by venue, and our liquidations page shows where forced selling has hit.

If you trade ETH perpetuals, the fee is the part you control. A $1,000 ETH perpetual position at Bitget's 0.06% taker fee costs $0.60 to open. With code nexu888, the 60% share in our partner registry returns $0.36 of that, settled daily. On OKX the same trade at 0.05% costs $0.50, and the 20% share with code nexu888 returns $0.10, settled hourly. The rebate is a share of the fee, not of the position. Fee schedules for both venues are on the Bitget profile and the OKX profile.

Earlier coverage

We covered ETH's slide below $2,100 and the liquidations that followed in an earlier report. That move happened after SharpLink's quarter closed, which is why it does not appear in the third-quarter profit.

What we could not confirm

• SharpLink's total ETH holdings and ETH-per-share figure at September 30. The 10-Q defines both metrics, but we did not find the figures in the sections we read.
• The exact Coinbase price SharpLink used for its September 30 valuation. We used Binance daily closes as a stand-in.
• How much of the third-quarter gain came from directly held ETH versus the Galaxy fund interest.
• The Block's report on the results, which blocked our reader. Our figures come from the filing itself.

Quick answers

How much did SharpLink earn in Q3 2026?

Net income was $751.4 million for the three months to September 30, 2026, up from $104.3 million a year earlier, according to its 10-Q filed on November 6.

Why was the profit so large?

SharpLink carries its directly held ETH at market value. ETH rose about 71% in the quarter on Binance daily closes, and the filing attributes the jump in net income mainly to crypto asset gains.

Is SharpLink profitable for the year?

No. For the nine months to September 30, 2026, it reported a net loss of $328.4 million.

Has SharpLink borrowed against its ETH?

Not as of the 10-Q filing date. It signed a loan agreement with Galaxy Digital on September 21 and set up a collateral account on October 14, but had not borrowed.