Sharplink, Inc. (SBET)

A. Company Overview

Sharplink, Inc. is an innovative entity positioned at the forefront of digital asset management and affiliate marketing, specifically catering to the evolving landscape of programmable finance and decentralized infrastructure. As of June 2025, the company undertook a transformative strategic shift by adopting Ether (ETH), the native cryptocurrency of the Ethereum blockchain, as its primary treasury asset. This decision aligns the company's financial management practices with the burgeoning field of digital capital markets and programmable finance. The company boasts the distinction of being one of the largest publicly traded holders of ETH, having raised approximately $3.2 billion in new capital since initiating its treasury strategy.

Sharplink operates through two primary business segments: ETH Treasury Management and Affiliate Marketing. These segments allow Sharplink to balance its portfolio between high-growth cryptocurrency holdings and established marketing strategies aimed at the online gaming industry.

B. ETH Treasury Management Segment

The ETH Treasury Management segment is central to Sharplink's business operations. It focuses on the accumulation and management of ETH as a strategic asset, intending to leverage potential price appreciation and generate returns from protocol-level rewards through Ethereum’s proof-of-stake (PoS) consensus mechanism. This segment involves delegating ETH to validators via asset managers to earn rewards, thereby enhancing revenue through staking activities.

Key components of this strategy include:

• ETH Accumulation: Since the formal launch of its ETH-focused strategy, Sharplink has accumulated an impressive total of approximately 868,699 ETH. This comprises various forms, including native ETH and tokenized versions, utilized within staking protocols.
• Staking Revenue Model: Revenues from native staking have shown significant growth potential. For instance, from June 2025 to the end of that year, the company generated approximately $24,182 from staking rewards, a figure expected to scale as the ETH holdings increase alongside broader market performance.
• Active Governance: Sharplink's management is actively involved in governance within the Ethereum ecosystem, having taken on roles in initiatives such as the Linea Consortium, aimed at enhancing the network's infrastructure and security, ultimately leading to better utility of its ETH treasury.

C. Affiliate Marketing Segment

The Affiliate Marketing segment focuses on providing performance-driven customer acquisition services to leading sportsbooks and online casino gaming operators globally. This segment has evolved further since the acquisition of FourCubed’s marketing assets in December 2021, which paved the way for Sharplink to effectively connect gaming operators with prospective players through a sophisticated international affiliate platform known as PAS.net.

• Market Penetration: As of March 2026, Sharplink operates a variety of state-specific affiliate marketing websites across 15 U.S. states, complying with local regulations governing online gaming and sports betting. The main revenue sources stem from commissions earned through player acquisitions and gaming activities.
• Competitive Landscape: This sector is characterized by intense competition, with numerous domestic and international participants striving for user engagement. Factors influencing success include brand recognition, regulatory compliance, and content quality.

D. Institutional Adoption and Market Positioning

Sharplink stands at the helm of a significant trend involving the adoption of Ethereum by major financial institutions. Renowned players in the financial sector, such as BlackRock and Goldman Sachs, have displayed a shift from traditional investment models to strategies incorporating Ethereum, establishing it as a foundational component in global financial infrastructure.

• Market Outlook: The emergence of Digital Asset Treasury (DAT) companies represents a novel approach to the public markets. Companies like Sharplink provide regulated exposure to digital assets, a proposition increasingly sought after by investors desiring direct engagement with the digital ecosystem without forfeiting corporate governance.
• Strategic Integration: By maintaining an internal digital asset treasury management function, Sharplink maximizes control over asset allocation, risk management, and compliance, ensuring that its investments in ETH translate into sustained value creation.

E. Competitive Landscape and Differentiation

Sharplink's competitive environment encompasses various entities, including digital asset exchange-traded products and public companies with ancillary digital asset holdings. However, Sharplink differentiates itself by focusing on active treasury management rather than incidental crypto investments. As the sector matures, key competitive factors will pivot around governance strategies, risk frameworks, and internal capabilities for managing digital assets effectively.

• Strengths: The company’s internal management structure allows it to create synergies between its treasury activities and overall corporate governance, enhancing both operational efficiency and strategic decision-making.
• Growth Strategy: Sharplink's growth initiatives are underscored by disciplined capital allocation and adaptability, positioning the company to take advantage of market opportunities as regulatory landscapes evolve.

F. Intellectual Property and Research & Development

Intellectual property plays a critical role in Sharplink’s long-term strategy. The company employs a variety of protections, including trademarks and trade secrets, to safeguard its proprietary methodologies, risk management frameworks, and operational know-how related to its digital asset activities and marketing operations. It has developed significant internal processes to ensure the effectiveness and compliance of its treasury management activities, while alongside pursuing additional domain protections to strengthen its brand identity.