SharpLink Gaming's stock (NASDAQ: SBET) has been a notable gainer this year, up 146.53% following the company's aggressive expansion into Ethereum (ETH) holdings, and the upside move in the cryptocurrency.
SBET bulls are waking up to a boost from Wall St today, following an initiation of coverage by Alliance Global Partners, along with a lofty price target.
Alliance Global Partners' initiation of coverage comes with a”Buy” rating and a price target of $48, which is more than double the current trading price ($20.21 pre-market).
The analyst highlighted SharpLink's substantial daily trading volume of nearly $700 million and its partnership with Consensys as key factors driving the positive outlook.
The firm emphasized that the presence of Ethereum co-founder Joe Lubin as chairman and Joseph Chalom, a former BlackRock executive with digital asset expertise, as CEO positions SharpLink advantageously in the evolving digital asset landscape, particularly as the GENIUS Act fosters regulatory clarity around stablecoins.
SharpLink has strategically positioned itself as a major player in the Ethereum ecosystem through substantial acquisitions of ETH. As of July 2025, the company held over 438,000 ETH, valued at approximately $1.7 billion at the time. Key acquisitions include 176,271 ETH acquired in June 2025 for roughly $463 million, bringing total holdings to 198,478 ETH and a direct purchase of 10,000 ETH from the Ethereum Foundation for $25.7 million in July 2025.
More than 95% of these holdings are actively deployed in staking solutions, contributing to Ethereum's network security and generating native yield. These moves cement SharpLink's status as the largest publicly traded holder of ETH globally.
Despite these strategic gains, SharpLink reported a net loss of $103.4 million for Q2 2025, primarily due to an $87.8 million non-cash impairment charge related to its liquid-staked ETH and substantial stock-based compensation expenses. However, management views these losses as short-term, anticipating long-term benefits from potential Ethereum price appreciation and staking rewards.
Markets have reacted with cautious optimism to SharpLink's strategic pivot. While some express concerns regarding the volatility inherent in crypto assets, others see the company's Ethereum accumulation and staking strategy as a potentially lucrative move that could generate substantial returns if Ethereum continues to gain traction. The stock has demonstrated renewed momentum in recent weeks, indicating growing market confidence in its blockchain-centric strategy as Ethereum prices moved higher.
Bull Case:
- Alliance Global Partners initiated coverage with a “Buy” rating and a $48 price target.
- Company is the largest publicly traded holder of ETH, with over 95% of its holdings staked to generate yield.
- Strong leadership team includes Ethereum co-founder Joe Lubin and former BlackRock executive Joseph Chalom.
- High trading volume and strategic partnership with Consensys indicate strong market interest.
- The GENIUS Act is expected to provide regulatory clarity, potentially benefiting the company's strategy.
Bear Case:
- Reported a significant net loss of $103.4 million in Q2 2025, raising concerns about profitability.
- The company's financial performance is subject to the high volatility and inherent risks of the cryptocurrency market.
- A substantial non-cash impairment charge of $87.8 million on its ETH holdings impacted quarterly results.
- Significant stock-based compensation expenses contributed to the net loss.
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