Sharplink’s $751 million quarter is an ether mark-up, and Bitmine is 39,900 ETH short of 5%

Sharplink (Nasdaq: SBET), one of the largest listed ether treasuries, made a net profit of $751.4 million in the third quarter of 2026, and almost all of it came from the rising price of the ETH it holds. Its quarterly report (Form 10-Q), filed with the SEC after the close on Friday 6 November, shows $751.9 million of gains on crypto assets against revenue of $13.5 million. The company’s results release followed on Monday 9 November, reported by The Block at 15:40 UTC. The same morning, the largest ether treasury, Bitmine Immersion Technologies (NYSE: BMNR), said in an 8-K filed at 13:45 UTC that it held 6,070,092 ETH on 8 November, about 39,900 ETH short of its goal of owning 5% of the supply.

The two filings tell one story from two sides. A treasury company’s profit follows the ether price, and a quarter of rising prices can turn a year of losses into a headline gain. Sharplink is still in the red over nine months. Bitmine keeps buying, at about 10,000 ETH a week.

Sharplink Q3 earnings: where the $751 million came from

The income statement in the 10-Q has three lines that matter. Revenue was $13.46 million, of which $13.06 million came from staking and $0.4 million from the affiliate marketing business Sharplink ran before it turned into an ETH treasury. Operating expenses were $12.33 million, including $11.01 million of selling, general and administrative costs and a $1.04 million impairment on tokens carried at cost.

Revenue minus those expenses leaves about $1.1 million. Everything else is the line the filing calls total gains from operations: $751.9 million, made of a $75.2 million realised gain and a $676.7 million unrealised gain on crypto held at fair value. On our arithmetic, that line is 99.9% of the quarter’s operating income of $753.0 million.

The cause is printed in the same filing. Sharplink puts the ETH price at about $1,563 on 30 June and about $2,681 on 30 September, a rise of roughly 72% over the quarter. The realised part came mostly from redeeming LsETH, the Liquid Collective staking token ($55.6 million), and from swapping ETH into Lido’s proof of stake coin with a protocol that stakes it for you and issues a transferable token (such as Lido stETH or rETH) representing the deposit plus rewards, which you can use or sell while the coins stay staked.">wstETH ($18.0 million). Those are accounting gains on tokens the company kept in ETH form; they are not cash from customers.

Earnings per share were $3.46 basic and $3.45 diluted, against $0.70 and $0.62 a year earlier, when net income was $104.3 million. Joseph Chalom, the chief executive, said in the release quoted by The Block that the company’s “relentless focus translates into tangible financial results”, pointing to revenue growth. Staking revenue did grow, from $10.3 million to $13.1 million. Next to the mark-up, it is a rounding error.

Nine months still in the red

The quarterly figure hides how the year went. Sharplink lost $685.6 million in the first quarter and $394.3 million in the second, as ETH fell. The third quarter won back part of it. Over nine months the company shows a net loss of $328.4 million, with $268.8 million of impairments on tokens held at cost and a $151.0 million unrealised loss on tokens held at fair value. Its accumulated deficit grew from $812.4 million at the end of 2025 to $1.14 billion.

Source: Sharplink 10-Q for the quarter ended 30 September 2026; quarterly net figures from the statement of changes in equity. Blank cells are not given separately in the filing.

The balance sheet on 30 September shows $1.62 billion of crypto at fair value and $482.0 million at cost, $2.10 billion in all, with $47.9 million in cash and total liabilities of only $6.1 million. There is no debt. Sharplink signed a loan agreement with Galaxy Digital on 21 September and, on 14 October, a collateral account with Galaxy and Anchorage Digital, but the 10-Q says nothing had been borrowed when the accounts were issued.

How many ETH, and why the book value looks low

Sharplink said it held about 892,708 ETH at the end of September, according to The Block. The 10-Q gives a later count: about 895,117 ETH on 2 November, of which 603,953 native ETH and the rest in staking tokens (LsETH, ether.fi’s weETH and Lido’s wstETH) counted as if redeemed. At the 30 September price, 892,708 ETH would be worth about $2.39 billion, on our arithmetic, more than the $2.10 billion on the balance sheet. The gap comes largely from the staking tokens carried at cost minus impairments, which are not marked back up when the price recovers.

The money is also being put to work beyond plain staking. The filing describes a completed $200 million commitment to stake ETH through Lido, held for one year, and a $125 million fund with Galaxy, the Galaxy Sharplink Onchain Yield Fund, to which Sharplink committed $100 million and Galaxy $25 million. Sharplink’s first contribution, on 31 August, was 8,054 wstETH worth $24.8 million.

No buybacks in the quarter, and a share price below the ether

Sharplink has a $1.5 billion share repurchase programme, approved on 21 August 2025. The 10-Q table of repurchases shows none in July, August or September, with about $1.458 billion still available. The last buyback was in the second quarter: 2,132,773 shares for $10.0 million. Coindaro covered the wider question of which crypto treasuries are buying back stock instead of coins in October.

SBET traded around $6.20 when The Block published at 15:40 UTC on Monday, little changed on the day and down 36% this year, according to the outlet. With 217,267,066 shares outstanding on 30 September, that gives a market value of about $1.35 billion.

The ratio of that value to the crypto behind it, often called mNAV, is our own arithmetic, not a company figure, and Sharplink does not publish one in the 10-Q. Two versions give a range. Against the $2.10 billion of crypto on the 30 September balance sheet, $1.35 billion is about 0.64 times. Against 895,117 ETH valued at $2,123, the ETH price in Coindaro’s market snapshot at 17:27 UTC, about $1.90 billion, it is about 0.71 times. Both mean the market values the company at less than the ether it holds. Treasury companies often cite such a discount when they buy back stock; Sharplink did not in the quarter.

The second calculation also shows the quarter’s limits. ETH at $2,123 is about 21% below the $2,681 used on 30 September. On our arithmetic, the 892,708 ETH held at quarter end are worth about $498 million less than they were then. How much of that would reach the next income statement depends on how the tokens are split between fair value and cost, and on where ETH stands on 31 December.

The pattern is the one Strategy’s record $20.9 billion bitcoin quarter showed at the end of October. Bitcoin miners Core Scientific and TeraWulf also reported large profits last week that came mostly from non-cash warrant gains, as Coindaro reported in its piece on the miners’ move to AI and CryptoSlate detailed on Monday.

Bitmine: 6.07 million ETH, 39,900 short of 5%

Bitmine’s update is not an earnings report. Its fiscal year ends on 31 August, according to its SEC record, so it has no September quarter to publish; the 8-K is its weekly holdings statement. As of 8 November at 2:00 pm New York time (19:00 UTC), the company held 6,070,092 ETH valued at $2,234 each on Coinbase, plus 216 BTC, a $180 million stake in Beast Industries, $75 million of Eightco shares and $475 million in cash and marketable securities. It puts the total at $14.3 billion.

“Over the past week, we acquired 9,587 ETH,” chairman Tom Lee said in the release. Bitmine says it has bought every week since 30 June 2025. It counts 5,227,037 ETH as staked, about 86% of its ether, through its own MAVAN validator platform and partners.

Bitmine’s share is 4.97% of a 122.2 million ETH supply, in its own figures. Five per cent of that supply is 6.11 million ETH, so the company is about 39,900 ETH short of the target, on our arithmetic. On 19 October Bitmine reported 6.04 million ETH, about 65,000 short, which means roughly 30,000 ETH added in three weeks, using the rounded earlier figure.

The dollar total also moves with the price. At $2,123 (17:27 UTC), the 6,070,092 ETH are worth about $12.9 billion, some $674 million less than at the $2,234 used in the release. Bitmine holds about 6.8 times as much ETH as Sharplink.

Lee also leaned on Vitalik Buterin’s comment that ETH is a store of value, which Coindaro covered on Sunday; the release adds no new purchase plan or funding figure.

What to watch next

For Sharplink, the next numbers are the weekly or monthly ETH counts it publishes, any buyback filed against the $1.458 billion still authorised, and any first draw on the Galaxy loan, which would be the company’s first debt. For Bitmine, the next weekly 8-K will show whether purchases near 10,000 ETH a week continue; at that rate the 5% mark would take about four more weeks, on simple arithmetic that ignores new ETH issuance. Its first-quarter results for September to November come after its quarter closes, at a date it has not given.

For both, the fourth-quarter test is the ether price. ETH traded near $2,123 at 17:27 UTC on Monday, down about 4.6% over 24 hours, ahead of the US CPI release on Tuesday at 13:30 UTC.