Sharplink transfers ETH to Galaxy Digital amid unrealized losses of $479 million

Sharplink, the first publicly traded company to use Ethereum (ETH) as its primary reserve asset, has gained attention for migrating ETH to an OTC exchange.

The move comes as ETH has fallen more than 20% in November. The move has sparked speculation that Sharplink may sell to cut losses or rebuild its portfolio.

SharpLink faces record unrealized losses

According to Onchain Lens, using Arkham data, a SharpLink-linked wallet transferred 5,442 ETH (worth approximately $17.02 million) to Galaxy Digital, a leading digital asset management platform.

The move has raised concerns that the company is trying to sell to cut losses or rebalance its holdings.

According to Strategic ETH Reserve (SER) data, Sharplink has unrealized losses of $479 million due to the decline in ETH prices. CryptoQuant data shows an even bigger number of over $500 million.

SharpLink DAT Unrealized P&L. Source: CryptoQuant.

According to data from CoinGecko, SharpLink's average purchase price is $3,609. ETH is currently falling towards the $3,000 level. The company made its most recent acquisition a month ago, but has not added to its position since then.

Purchase SharpLink ETH. Source: Strategic ETH Reserve (SER)

“With ETH trading close to this cost base, this move strongly suggests the possibility of OTC sales or major portfolio rebalancing to reduce risk exposure,” commented investor Rose.

SharpLink is currently the second largest ETH holding institution after Bitmine. The company holds 859,853 ETH, representing 0.712% of the total ETH supply, and is worth over $2.6 billion.

Meanwhile, SBET stock has fallen from over $80 when Sharplink launched its ETH reserve strategy to $10.55 today. This represents a decrease of over 86%. SBET is currently trading at a 19% discount to NAV.

SharpLink Gaming's SBET price. Source: Yahoo Finance.

Overall, ETH accumulation activity among DATs slowed in November. Purchases are no longer made daily as they were in previous months. This change suggests a shift in sentiment from aggressive accumulation to caution towards the end of 2025.

SharpLink maintains commitment to ETH accumulation strategy despite price drop

However, in the latest announcement regarding X, SharpLink reported that it generated 336 ETH in staking rewards last week. This brings the cumulative staking rewards to 7,403 ETH, equivalent to approximately $1.1 million in generated value.

SharpLink cumulative staking rewards. Source: Sharplink

Almost all of the company's ETH is staked. This demonstrates the company's long-term commitment to its strategy despite market fluctuations.

“Our finances continue to create value regardless of price,” Sharplink said.

SharpLink Gaming reported third quarter 2025 revenue of $10.8 million, an increase of 1,100% year over year. Net income reached $104.3 million due to the company's Ethereum financial strategy.

With this report, SharpLink became one of the first ETH-based DATs to record positive revenue.

SharpLink's actions, like those of other ETH-focused DATs, show that these companies are betting on a much larger long-term strategy. Bitwise CIO Matt Hougan recently stated that only complex, value-added DATs deserve a premium, while passive DATs risk trading at a discount.

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