Sharplink and Galaxy plan to launch a $125M Ethereum yield fund using staked ETH across DeFi protocols.
Ethereum (ETH) treasury firm Sharplink and digital asset company Galaxy announced plans on May 11 to launch a joint $125 million on-chain yield fund. The fund will allocate staked $ETH into decentralized finance (DeFi) protocols to generate returns without requiring Sharplink to liquidate any holdings. It is expected to launch within weeks. #Ethereum #ETH #DeFi #InstitutionalCrypto
The fund will be named the Galaxy Sharplink Onchain Yield Fund. Sharplink will contribute $100 million from its staked ETH treasury. Galaxy will commit the remaining $25 million and manage all deployments, including protocol selection, position sizing, and ongoing monitoring.
"Institutional capital is moving on-chain, and the infrastructure to support it has matured to a point where allocators can access yield, liquidity, and risk management with the same rigor they expect in traditional markets," said Galaxy founder and CEO Mike Novogratz.
Sharplink Reports $686M Q1 Loss
The fund launch came alongside Sharplink's Q1 2026 financial results. The company posted a net loss of $685.6 million, or $3.25 per diluted share, for the quarter ending March 31. Of that total, $506.7 million came from unrealized losses on its ETH holdings.
Ethereum fell from roughly $3,354 on Jan. 15 to $2,104 by March 31, according to CoinMarketCap data. The token was trading near $2,329 at the time of writing. Revenue for the quarter rose to $12.1 million, up from $700,000 in Q1 2025.
"Generating risk-adjusted, ETH-denominated returns through active treasury management is the foundation of everything we do at Sharplink," said Sharplink CEO Joseph Chalom. He added that the company moved beyond basic staking into a broader range of on-chain strategies during the quarter.
Since launching its Ethereum treasury strategy in June 2025, Sharplink has accumulated roughly 18,800 ETH in cumulative staking rewards. The company holds approximately 872,984 ETH, valued at around $2.1 billion at current prices. It ended Q1 with $16.9 million in cash.
Shares in Sharplink (SBET) rose about 2% following the announcements on May 11, trading near $7.59. Galaxy (GLXY) shares climbed roughly 2.3% to around $30.92. SBET has gained about 16% over the past month but remains down approximately 34% over the past six months.
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