--- title: "Sharplink Lost $686 Million In Q1, But SBET Could Still Double Thanks To 'Favorable Setup'" type: "News" locale: "en" url: "https://longbridge.com/en/news/286130478.md" description: "Sharplink Gaming Inc. (NASDAQ:SBET) reported a $686 million net loss in Q1 2026, primarily due to unrealized losses from Ethereum price declines. Despite this, TD Cowen maintained a buy rating with a $16 price target, suggesting a 106% upside. Revenue surged to $12.1 million from $742,000, driven by staking income. Sharplink plans to launch a $125 million DeFi initiative with Galaxy Digital. Analysts see a favorable setup for SBET, trading at 0.8 times NAV, supported by strong Ethereum demand and a staking-driven model generating $59 million annually." datetime: "2026-05-12T15:59:54.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286130478.md) - [en](https://longbridge.com/en/news/286130478.md) - [zh-HK](https://longbridge.com/zh-HK/news/286130478.md) --- # Sharplink Lost $686 Million In Q1, But SBET Could Still Double Thanks To 'Favorable Setup' **Sharplink Gaming Inc.** (NASDAQ:SBET) has posted a $686 million net loss in Q1, yet **TD Cowen** reiterated its buy rating with a $16 price target, implying 106% upside from Monday’s close at $7.76. ### Revenue Jumps From $742,000 To $12.1 Million Sharplink reported Q1 2026 revenue of $12.1 million on Monday, up from just $742,000 in the same period last year.  The company pointed to staking income from its treasury strategy as the main driver. The net loss of nearly $686 million came mostly from unrealized losses tied to **Ethereum** (CRYPTO: ETH) price declines.  Ethereum was trading around $3,000 at the beginning of 2026 before dropping roughly 40% to $1,800 and closing the quarter at nearly $2,000. Sharplink holds 872,984 ETH as of May 4, a stash worth nearly $2.4 billion at current prices. That makes it the world’s second-largest public ETH treasury company behind **Bitmine Immersion Technologies** (NYSE:BMNR). ### Galaxy Digital Partnership Targets $125 Million In DeFi Yield Sharplink announced plans to launch the Galaxy Sharplink Onchain Yield Fund with Galaxy Digital, a $125 million initiative to deploy capital into DeFi and liquidity opportunities. Moreover, Sharplink will contribute approximately $100 million, with a focus on generating returns above basic staking yields. CEO **Joseph Chalom** described the strategy as hitting “singles and doubles,” not looking for VC-like returns.  “Inbound demand and deployment opportunities have been strong, but we are not rushing,” Chalom said. “Operational rigor is non-negotiable,” he added. ### TD Cowen Sees Four Demand Pillars For Ethereum TD Cowen analysts led by **Lance Vitanza** called the current share price a “favorable setup” driven by a discount to NAV and expanding Ethereum demand. Sharplink currently holds approximately 873,000 ETH worth roughly $2 billion at current prices, implying a NAV of about $9.68 per share. At Monday’s close of $7.76, the stock trades at approximately 0.8 times NAV. TD Cowen identified four pillars for Ethereum demand: stablecoins as a scaled global payments layer, tokenization as real-world assets move on-chain, DeFi as core infrastructure for lending and liquidity, and agentic finance or AI-driven autonomous economic activity. The staking-driven operating model provides downside support. TD Cowen’s analysis shows staking yield generating approximately $59 million annually against $22.3 million in fixed charges, with a model breakeven ETH price of $883, well below current market levels. _Image: Shutterstock_ ### Related Stocks - [SBET.US](https://longbridge.com/en/quote/SBET.US.md) - [ETHE.US](https://longbridge.com/en/quote/ETHE.US.md) - [ETHW.US](https://longbridge.com/en/quote/ETHW.US.md) - [FETH.US](https://longbridge.com/en/quote/FETH.US.md) - [ETHV.US](https://longbridge.com/en/quote/ETHV.US.md) - [ETH.US](https://longbridge.com/en/quote/ETH.US.md) - [ETHHKD.VAHK](https://longbridge.com/en/quote/ETHHKD.VAHK.md) - [ETHUSD.VAHK](https://longbridge.com/en/quote/ETHUSD.VAHK.md) - [BMNR.US](https://longbridge.com/en/quote/BMNR.US.md) - [BRPHF.US](https://longbridge.com/en/quote/BRPHF.US.md) - [GLXY.US](https://longbridge.com/en/quote/GLXY.US.md) - [BMNRD.US](https://longbridge.com/en/quote/BMNRD.US.md) ## Related News & Research - ['The Entire Economy Is Going To Be Tokenized,' Consensys CEO Joseph Lubin Says, Positioning Ethereum As The Winner](https://longbridge.com/en/news/286265353.md) - [Ethereum Community Debates Changes To Staking Model As ETH Remains Stuck Below $2,300](https://longbridge.com/en/news/286153164.md) - [Lance Vitanza Initiates Buy on Sharplink, Citing Improved Risk/Reward, Galaxy Partnership, and Undervalued ETH-Focused Fundamentals](https://longbridge.com/en/news/286083377.md) - [Sharplink Gaming (NASDAQ:SBET) Stock Price Down 9.2% Following Insider Selling](https://longbridge.com/en/news/286582597.md) - [Kelp DAO eyes unpausing withdrawals after attackers’ rsETH on Arbitrum is burned](https://longbridge.com/en/news/286196944.md)