QS Research · Michael Burry's Scion Capital analyst template · 2006
Sharplink, Inc. (SBET)
As of 2026-11-08 · 8/15 boxes filled from SEC filings and market data
Conclusion: WATCH
Conviction low · base case none · downside -49% · upside +12%
The market is not missing an operating franchise: there is none. Normalized over FY2022-FY2025, net income to common averages -$188.5M (S1), and TTM is -$1.06B (N7), with TTM operating cash flow -$34.2M (N8); even the best cycle year had operating income of -$4.8M (S1). What may be mispriced is a crypto treasury at a discount to tangible equity: $2.17B of equity (N14) is about $9.98 per share (N1), and Sep 30 carrying values were below market by about $267.8M (S10), while the last disclosed sale price was $8.39 (S39) and Q2 buybacks were about $4.70 (S41). But the equity is ETH, impairments are not reversed under GAAP (S41), dilution is heavy (N1 versus S6), and governance and insider selling are poor (S12, S39), so this is a watch, not a long. A base case at today's 0.84x P/B gives 0%, downside is -49% if one more year of the TTM loss is realized, and upside is +12.3% if the carrying-value discount is marked up; the rule is not met.
Key numbers
- Latest financial period: TTM to Sep 30, 2026
- Revenue (TTM): $52.8M
The 15 boxes
- ✓ 1. Long-form business notes
SharpLink's business changed completely between the FY2023 10-K and the FY2025 10-K: a small US sports/iGaming affiliate marketer became, from June 2, 2025, an Ethereum treasury company plus a legacy affiliate segment. The ETH segment earns almost nothing operationally yet (FY2025 native staking rewards printed as $24,182 since June 2025) while the balance sheet carries roughly 868,699 ETH as of March 6, 2026 and $2.42B of total equity at December 31, 2025. Revenue went $3.5M (FY2022), $5.0M (FY2023), $3.7M (FY2024), $28.1M (FY2025), and FY2025 operating income was -$733.9M, so reported results are driven by digital-asset marks, not by the affiliate cash flow.
- ○ 2. Competitive advantage
The sources show no durable competitive advantage: Sharplink loses money on operations in every fiscal year covered (operating income -$14.3M FY2022, -$8.9M FY2023, -$4.8M FY2024, -$733.9M FY2025) on a revenue base that never topped $5.0M until FY2025's $28.1M. Since the May 2025 PIPE Offering its asset base is ETH, not a franchise: ETH is 98% of total assets, total equity went from $2.1M (FY2024) to $2.42B (FY2025) and diluted shares from 0.34M to 99.72M. The one positive net income year (FY2024, +$10.1M to common) sits on a -$4.5M pre-tax loss, so it is not evidence of earning power. What the company owns is capital raised in equity markets and held in a single volatile asset, not brand, switching costs or licences.
- ✓ 3. 10-Q takeaways
Latest 10-Q (Q3 2026, filed 2026-11-06) quantifies only native staking revenue: $8,540k in Q3 2026 and $27,231k for the nine months to Sep 2026, against ETH treasury of about 895,117 ETH as of Nov 2 2026. Q3 2026 impairment charges were much smaller than Q1/Q2 2026, and carrying values for LsETH/weETH/wstETH were below Sep 30 2026 market values, so unrealized appreciation is not in earnings. Risk factors center on ETH price volatility, liquidity and securities-law/Investment Company Act uncertainty. The excerpt does not provide total sales, margins, cash, buybacks or numeric guidance.
- ✓ 4. Corporate governance
Filled; members read this box.
- ✓ 5. Overview of the prior 3 years of 8-K filings
Filled; members read this box.
- ✓ 6. Other significant filings
Filled; members read this box.
- ○ 7. Chronology of significant news and events
- ○ 8. Comparables valuation interpretation
- ✓ 9. Insider trading interpretation
Filled; members read this box.
- ○ 10. Earnings-call notes
- ○ 11. Impression of the shareholder letter
- ○ 12. Scuttlebutt overview
- ✓ 13. Valuation and risk/reward summary
Filled; members read this box.
- ○ 14. Current price suppression and potential catalysts
- ✓ 15. Conclusions
The call above.
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