Sharplink Gaming shares plummeted on Friday.
Ethereum Treasury shares are trading at $20.04, down nearly 15% in intraday trading.
Sharplink reported a net loss of $103 million over the three months ended June 30th. This is in stark contrast to the net income of nearly $12 million in the same period last year.
Revenue was $1.4 million in the second quarter, down 30% from the same period last year. The company recorded a gross profit of $0.3 million, a 50% decline from the first half of last year.
The report marks Sharplink’s first revenue report since it announced its pivot into an Ethereum-centric corporate strategy in May.
Sharplink executives said the recent losses have been attributed to a non-cash impairment loss of $87.8 million on LSE shares. They also pointed to equity-based compensation related to a strategic advisory agreement with Consensey, worth $16.4 million. (Disclosure: Consensys is one of 22 editorially independent decryption investors.)
“So there’s no confusion for investors. I would like to clearly state that this is a non-cash loss and the result of a company following current accounting practices,” Sharplink Gaming’s Chief Financial Officer Robert Delucia said on Friday in a revenue call with analysts.
The company’s revenue shortfall comes a day after Ethereum prices fell below $4,400 in the first half of Friday, leaving it within a notable distance from a record price of over $4,800. The retracement followed a hotter than expected producer price index report, which received President Donald Trump’s meeting with Russian President Vladimir Putin on Friday.
Sharplink currently holds 728,804 ETH. According to data provider Coingecko, the token is worth a total of $3.233 billion at the time of writing.
Ethereum is trading at $4,444 at the time of writing, down 2.2% over the past 24 hours, the same data shows.
