The Daily: Ethereum DAT SharpLink dips on $103 million Q2 loss, ETH ETFs see strong inflows, Galaxy raises $1.4 billion in debt financing and more
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.Happy Friday! James is out, so I’m stepping in again to bring you the latest from the crypto world. Crypto treasury firms are expanding their holdings, but recent earnings tell a more cautious story. Ethereum-focused BTCS Inc. and Solana treasury firm DeFi Development Corp added to their reserves, while SharpLink and Bit Digital posted weaker Q2 results amid ongoing treasury pivots. U.S. spot Ethereum ETFs saw $639.6 million in net inflows on Thursday, extending their positive streak to eight days — one of the longest runs since launch. Elsewhere, Galaxy secured a $1.4 billion loan to upgrade its Helios bitcoin mining facility in preparation for AI infrastructure deals. On the regulatory front, the Federal Reserve has shut down its crypto bank supervision program, and the U.S. SEC has delayed decisions on Solana ETFs from Bitwise, 21Shares, and VanEck, as well as 21Shares’ Dogecoin ETF proposal. P.S. I also write The Funding, a biweekly newsletter covering crypto VC trends. The latest edition explored whether massive treasury deals are hurting early-stage startup funding. Subscribe here. Let’s dive in. SharpLink’s stock drops after $103M Q2 loss — despite $3.3B ETH holdings SharpLink Gaming, the second-largest Ethereum digital asset treasury (DAT) company, reported a $103 million net loss in Q2, sending its stock down about 15% on Friday.Most of the hit came from a non-cash impairment charge — required under the Generally Accepted Accounting Principles (GAAP) — due to ETH dipping to $2,300 during the quarter. ETH now trades above $4,500, putting SharpLink’s 728,804 ETH holdings at more than $3.3 billion.Nearly all of SharpLink’s ETH is staked, generating 1,326 ETH ($6 million) in rewards so far. The firm also reported a 98% jump in its “ETH concentration” metric — how much ETH the company holds per every 1,000 potential shares.“SharpLink is actively compounding value for our fellow stockholders through yield generation and intelligent capital deployment,” said SharpLink chairman and Ethereum co-founder Joseph Lubin.The broader ETH treasury trend continues to accelerate — The Block’s data shows the cumulative market cap of public companies holding ETH has now surpassed $10 billion. ETH ETFs log $639M in inflows, extending 8-day streak U.S. spot Ethereum ETFs brought in $639.6 million on Thursday — their eighth straight day of inflows, following Monday’s record $1.02 billion. Cumulative inflows over the past eight days now stand at $3.71 billion.BlackRock’s ETHA led the charge with $519.7 million on Thursday, followed by Grayscale’s Ethereum Mini Trust ($60.7M) and Fidelity’s FETH ($56.9M), per SoSoValue.Ethereum is up nearly 19% on the week and briefly traded near its all-time high. Standard Chartered has now nearly doubled its year-end ETH target to $7,500.Spot bitcoin ETFs also saw $230.9 million in inflows Thursday. Deribit to launch USDC-settled linear BTC and ETH options Deribit, now owned by Coinbase, will launch USDC-settled linear bitcoin and ether options on Aug. 19 — a move aimed at expanding stablecoin-settled derivatives to the two largest crypto assets. The rollout also includes BTC and ETH dated futures settled in USDC.The new contracts follow growing institutional and retail demand for fiat-equivalent settlement and come 18 months after Deribit introduced similar altcoin options. Unlike inverse options, linear contracts pay out proportionally in USDC and are designed to improve capital efficiency.Deribit, the largest crypto options exchange, posted its best-ever trading volume in July and was acquired by Coinbase in a $2.9 billion deal finalized this week. Fed ends crypto bank supervision program amid regulatory reset The U.S. Federal Reserve has ended its “Novel Activities Supervision Program,” a crypto-focused oversight effort launched in August 2023 to monitor banks experimenting with digital assets and fintech.In a statement Friday, the Fed said it had gained sufficient understanding of these activities and will fold oversight back into its standard supervisory framework.The move reflects a broader regulatory shift under the Trump administration. U.S. agencies including the FDIC and SEC have eased prior restrictions, with the FDIC now allowing banks to engage in crypto without pre-notification, and the SEC working on “Project Crypto” to modernize digital asset rules. Galaxy raises $1.4B via debt to power AI future at Helios mining center Galaxy Digital has secured $1.4 billion in debt financing to retrofit its Helios bitcoin mining facility into a high-performance AI datacenter for cloud computing company CoreWeave.The two firms have signed a 15-year lease under which Galaxy will provide up to 800 MW of computing power.The deal marks a major expansion of Galaxy’s business model beyond crypto and into AI infrastructure.CoreWeave, which began as a crypto miner, is now one of the largest providers of GPU cloud services. Galaxy expects to generate over $1 billion in average annual revenue from the agreement. In the next 7 days U.S. housing data lands on Aug. 19, followed by the Federal Reserve's July meeting minutes on Aug. 20 — both key for assessing the rate outlook and economic momentum. On Aug. 21, watch for initial jobless claims, PMIs, and existing home sales.Internationally, the U.K. posts July CPI data on Aug. 20, and the eurozone releases flash PMIs on Aug. 21 — important signals for global growth and monetary policy trends.Notable token unlocks next week include EigenLayer, IOTA, LayerZero, and Kaito. Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.