Sharplink deploys $2 billion ETH treasury into on-chain yield strategies
Sharplink has deployed over $400 million of its $2 billion ETH holdings into yield-generating protocols and launched a fund with Galaxy Digital. The company aims to provide long-term liquidity to the Ethereum ecosystem, positioning itself as a steward of institutional capital.
Sharplink, which holds approximately $2 billion in ETH, has deployed over $200 million into Lido and partnered with EtherFi for another $200 million. The company also launched a $125 million fund with Galaxy Digital, investing $100 million, to deploy capital to multiple protocols for yield. Sharplink capitalized the fund by borrowing against Lido-staked ETH, maintaining directional long exposure while earning staking rewards.
The company also funded three Ethereum ecosystem spinoffs: ETH Labs, focusing on shorter block times and finality; ETH Systems, focused on institutional privacy and confidentiality; and Ethereum Institutional, dedicated to go-to-market and education for over 500 institutions. Joseph Shalom described Sharplink as a steward of the Ethereum ecosystem, using permanent capital to provide long-term total value locked to protocols starved of liquidity. He compared the firm’s approach to that of sovereign wealth funds, noting that Sharplink does not have daily redemption requirements. Shalom stated that the company can deploy capital on a multi-year basis to achieve higher returns than the standard Ethereum staking rate, differentiating itself from traditional venture capital or short-term funds.