Sharplink, Inc. Segments Disclosure
Note 13 – Operating Segments
The Company’s Chief Executive Officer serves as the Chief Operating Decision Maker (“CODM”) and evaluates the financial performance of the business and makes resource allocation decisions on the basis of its two different revenue sources. The ETH Treasury Management segment captures ETH-based yield generated by participating in Ethereum network’s staking protocol which is currently comprised of rewards received from native and liquid staking. The Affiliate Marketing segment is focused on performance-based customer acquisition services for leading sportsbooks and online casino gaming operators throughout the world. The CODM assesses financial performance by segment for revenue, operating profit (loss) and key operating expenses, as well as significant segments assets, as detailed below.
As a result, the Company operates two reportable segments under ASC 280, Segment Reporting, ETH Treasury Management and Affiliate Marketing.
ETH Treasury Management
On June 2, 2025, the Company launched an ETH-centered treasury strategy and established ETH Treasury Management as a dedicated operating segment, delivering recurring, yield-based revenue and returns. The staking revenues are derived from the rewards the Company’s earns by actively participating in the Ethereum network’s proof-of-stake consensus mechanism. The Company delegates ETH holdings to validators that process and verify transactions on the blockchain. In return, the Company receives protocol-level rewards in ETH, typically proportional to the amount staked and the network’s overall activity and performance. During 2025, our ETH Treasury Management segment includes both native and liquid staking activities.
Total ETH Treasury Management net loss from continuing operations before income taxes was $(733,046) for the year ended December 31, 2025.
Affiliate Marketing
The Company’s Affiliate Marketing operations include performance marketing services, lead generation and data analytics. The Company focuses on delivering quality traffic and player acquisitions, retention and conversions to global casino gaming partners worldwide in exchange for a commission (cost per acquisition or portion of net gaming revenues) paid to the Company by the partners for the new players referred to them.
Total Affiliate Marketing net income (loss) from continuing operations before income taxes was $(423) for the year ended December 31, 2025 and $(4,474) for the year ended December 31, 2024.
The following table presents significant segment assets regularly provided to and reviewed by the CODM for each operating segment as of the year ended December 31, 2025:
| ETH Treasury Management | Affiliate Marketing | Total Consolidated | ||||||||||
| Cash | $ | 28,021 | $ | 518 | $ | 28,539 | ||||||
| USDC stablecoin | 1,882 | 1,882 | ||||||||||
| Crypto assets at fair value | 1,899,683 | 1,899,683 | ||||||||||
| Crypto assets at cost | 500,912 | 500,912 | ||||||||||
| Other assets | 650 | 100 | 750 | |||||||||
| Total consolidated assets | $ | 2,431,148 | $ | 618 | $ | 2,431,766 | ||||||
The following table presents significant segment expenses regularly provided to and reviewed by the CODM for the each operating segment for the year ended December 31, 2025:
| ETH Treasury Management | Affiliate Marketing | Total Consolidated | ||||||||||
| Revenue from staking, net | $ | 25,594 | $ | $ | 25,594 | |||||||
| Revenue from affiliate marketing | 2,461 | 2,461 | ||||||||||
| Total revenue | 25,594 | 2,461 | 28,055 | |||||||||
| Gains and (losses) from operations | ||||||||||||
| Realized gain on crypto assets, net | 55,213 | 55,213 | ||||||||||
| Unrealized loss on crypto assets at fair value, net | (616,173 | ) | (616,173 | ) | ||||||||
| Total losses from operations | (560,960 | ) | (560,960 | ) | ||||||||
| Less: | ||||||||||||
| Cost of revenues | 1,897 | 1,897 | ||||||||||
| Salaries and benefits | 12,902 | 858 | 13,760 | |||||||||
| Stock-based compensation | 30,171 | 30,171 | ||||||||||
| Bank fees | 810 | 1 | 811 | |||||||||
| Asset manager fees | 5,629 | 5,629 | ||||||||||
| Accounting and Legal expenses | 5,163 | 5,163 | ||||||||||
| Impairment of crypto assets at cost | 140,208 | 140,208 | ||||||||||
| Other segment expenses (1) | 2,797 | 129 | 2,926 | |||||||||
| Segment net loss from continuing operations before income taxes | $ | (733,046 | ) | $ | (423 | ) | $ | (733,470 | ) | |||
| (1) | - other segment items include: consulting and compliance fees, general and administrative, insurance, and other income and expenses. |
The following table presents significant segment assets regularly provided to and reviewed by the CODM for each operating segment as of the year ended December 31, 2024:
| ETH Treasury Management | Affiliate Marketing | Total Consolidated | ||||||||||
| Cash | $ | $ | 1,437 | $ | 1,437 | |||||||
| USDC stablecoin | ||||||||||||
| Crypto assets at fair value | ||||||||||||
| Crypto assets at cost | ||||||||||||
| Other assets | 1,134 | 1,134 | ||||||||||
| Total consolidated assets | $ | $ | 2,571 | $ | 2,571 | |||||||
The following table presents significant segment expenses regularly provided to and reviewed by the CODM for each operating segment for the year ended December 31, 2024:
| ETH Treasury Management | Affiliate Marketing | Total Consolidated | ||||||||||
| Revenue from affiliate marketing | $ | $ | 3,662 | $ | 3,662 | |||||||
| Total revenue | 3,662 | 3,662 | ||||||||||
| Gains and (losses) from operations | ||||||||||||
| Realized gain on crypto assets, net | ||||||||||||
| Total losses from operations | ||||||||||||
| Less: | ||||||||||||
| Cost of revenues | 2,756 | 2,756 | ||||||||||
| Salaries and benefits | 1,429 | 1,429 | ||||||||||
| Contractors and consulting expense | 307 | 307 | ||||||||||
| Marketing expenses | 214 | 214 | ||||||||||
| Other segment expenses (1) | 3,430 | 3,430 | ||||||||||
| Segment net loss from continuing operations before income taxes | $ | $ | (4,474 | ) | (4,474 | ) | ||||||
| (1) | - other segment items include: stock-based compensation, professional fees, general and administrative, bank fees, insurance, and other income and expenses. |
Revenue by Geographic Location
Summarized revenues by country in which the Company operated are shown below. All ETH Treasury Management revenue occurred within the United States.
For the Year Ended December 31, 2025:
| United States | $ | 26,131 | ||
| Rest of the World | 1,924 | |||
| Revenue | $ | 28,055 |
For the Year Ended December 31, 2024:
| United States | $ | 815 | ||
| Rest of the World | 2,847 | |||
| Revenue | $ | 3,662 |
The Company does not have material assets in foreign jurisdictions.
The Company’s Affiliate Marketing Services segment derives a significant portion of its revenues from several large customers for the year ended December 31, 2024. There were no major customers during the year ended December 31, 2025. The table below presents the percentage of consolidated revenues derived from large customers:
| December 31, 2024 | ||||
| Customer A | 39 | % | ||
| Customer B | 22 | % | ||
| Customer C | 14 | % | ||
| Customer D | 14 | % | ||
These four customers had amounts due to the Company of $226 for December 31, 2024.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.