Sophia Bennett
Crypto Analyst
SharpLink has been sitting on one of the largest corporate Ethereum treasuries in the world. Now it is putting a significant slice of it to work, and it has brought in one of crypto's most credible institutional operators to manage it.
Galaxy Digital and SharpLink announced a plan to form the Galaxy SharpLink Onchain Yield Fund, a private investment vehicle that will deploy capital across DeFi liquidity protocols and other onchain yield‑generating strategies, with Galaxy serving as investment manager.
The fund will receive commitments totalling $125 million, $100 million from SharpLink's staked Ethereum treasury and $25 million from Galaxy, and is planned to launch within the coming weeks under a non‑binding memorandum of understanding.
Why SharpLink Is Moving Beyond Passive Staking
SharpLink has been staking ETH since mid‑2025 and has done well from it. But staking alone only takes you so far, and the company has made clear it wants more from its holdings.
SharpLink CEO Joseph Chalom described the company's expanding onchain deployment strategy as aiming to hit "singles and doubles." "We're not looking for VC‑like returns," he said, adding that inbound demand and deployment opportunities have been strong but operational rigor remains non‑negotiable.
The structure is designed to let SharpLink preserve its core ETH exposure, the balance sheet asset that underpins its entire equity thesis, while putting that capital to productive use beyond passive staking.
SharpLink reported Q1 2026 revenue of $12.1 million, a sharp increase from just $742,000 in the same period the year before, with staking income from its treasury strategy as the main driver.
The Numbers Behind SharpLink's ETH Stack
To understand the scale of what is being deployed here, you need to see the full picture.
SharpLink holds 872,984 ETH according to its Q1 results, and has generated 18,800 ETH in staking rewards since launching its ether treasury strategy in June 2025.
SharpLink is the second‑largest publicly traded corporate holder of Ethereum, behind Bitmine Immersion Technologies, which holds over 4.5 million ETH. The company has positioned itself as the "MicroStrategy of Ethereum", raising approximately $3.2 billion in capital markets to fund ETH acquisitions while measuring success by ETH per share, currently at 4.01, rather than GAAP earnings.
Despite the revenue growth, the company posted a near $686 million net loss in Q1, almost entirely from unrealized losses tied to Ethereum's price decline during the quarter.
What Galaxy Brings to the Table
This is not a partnership of convenience. Galaxy is one of the most active institutional participants in onchain finance, and that track record matters enormously here.
Protocol selection, exposure sizing, and ongoing monitoring will be governed by Galaxy's institutional research and risk management framework, the same discipline applied across the firm's lending, trading, and asset management businesses, and a defining feature of how Galaxy has operated onchain across multiple market cycles. Galaxy has been actively deploying hundreds of millions of dollars of capital onchain since 2020.
In June 2025, Galaxy closed a $175 million venture fund targeting early‑stage investments in DeFi, stablecoins, and blockchain infrastructure, with early deployments into Monad and Ethena.
Mike Novogratz, Galaxy's founder and CEO, said institutional capital is moving onchain and that the infrastructure to support it has matured to the point where allocators can access yield, liquidity, and risk management with the same rigour they expect in traditional markets.
A Broader Shift in How Public Companies Hold Crypto
SharpLink's Chief Investment Officer Matthew Sheffield said the fund is designed to preserve core staked Ethereum exposure while generating excess returns that accrue back to shareholders, describing it as an extension of the treasury strategy into more active strategies aimed at providing sustainable term structures to great projects.
The deal signals something bigger than a single fund launch. It shows that public companies holding digital assets are moving from passive storage toward active, institutionally managed yield generation, treating their crypto treasuries the way asset managers treat any other capital allocation.
The strategy looks to provide liquidity to DeFi protocols while generating returns above the average Ethereum staking rate, a benchmark that has become the baseline floor for any serious institutional onchain strategy in 2026.
