SharpLink Gaming's stock plummeted 9.15% during Tuesday's intraday trading session, following the company's disclosure of a substantial first-quarter loss.

The sharp decline comes after SharpLink reported a net loss of $686 million for Q1 2026, primarily driven by unrealized losses tied to Ethereum price declines. The company holds approximately 873,000 ETH worth nearly $2.4 billion at current prices, and Ethereum experienced a roughly 40% price drop during the quarter from around $3,000 to $1,800 before recovering to nearly $2,000.

Despite the significant loss, TD Cowen reiterated its buy rating on SharpLink with a $16 price target, citing the company's staking-driven operating model and favorable setup driven by a discount to net asset value. The firm noted that staking yield generates approximately $59 million annually against $22.3 million in fixed charges, with a model breakeven ETH price of $883, well below current market levels.