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SharpLink (NASDAQ: $SBET) reported a $394.3 million net loss for the second quarter as losses tied to its large Ethereum (CRYPTO: $ETH) treasury outweighed an increase in revenue.

The company, the second-largest publicly traded holder of Ether, reported $11.5 million in revenue for the three months ended June 30, up from $697,000 a year earlier, according to a Monday announcement.

Most of the revenue came from staking, which generated $11.2 million during the quarter compared with just $29,000 in the same period of 2025.

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Despite the sharp rise in revenue, the company reported substantial losses linked to the value of its crypto holdings. Sharplink recorded a $321 million unrealized loss on crypto assets during the quarter, along with a $76.1 million impairment charge tied to LsETH and weETH. The company said the impairment was a non-cash accounting charge and did not reduce the amount of ETH or ETH-equivalent tokens it held.

Sharplink held about 886,881 ETH at the end of June, with its crypto assets valued at roughly $1.4 billion under U.S. accounting rules. By Aug. 3, its total ETH holdings had risen to 888,938 ETH.

The company also raised $75 million through a registered direct offering in June, using part of the proceeds to buy about 10,000 ETH at an average price of $1,611. Sharplink separately repurchased roughly 2.1 million of its own shares for about $10 million.

Beyond its treasury strategy, Sharplink said it plans to provide funding to EthLabs, Ethereum Institutional and EthSystems, three groups focused on protocol development, institutional adoption and privacy infrastructure.

The company also launched the Galaxy Sharplink Onchain Yield Fund after the quarter ended, with $125 million in committed capital, including $100 million from Sharplink and $25 million from Galaxy.

Sharplink shares are down more than 30% year-to-date, currently trading at $6.10 apiece.