Sharplink remains the second largest treasury on Ethereum with approximately 868,700 ETH.
Mike Novogratz’s digital asset firm Galaxy Digital and ETH treasury firm Sharplink have announced a non-binding memorandum of understanding to form the Galaxy Sharplink Onchain Yield Fund.
This new private investment vehicle will focus on DeFi liquidity protocols and other on-chain yield generation strategies.
$125 million Institutional Return Fund
According to the official press release, Galaxy will serve as investment manager for the fund. The fund is expected to be launched in the coming weeks with total commitments of $125 million. This includes $100 million from Ethereum-owned Sharplink treasury and $25 million from Galaxy.
The strategy will focus on identifying high-return opportunities across blockchain-based financial markets by allocating capital to selected on-chain applications. The structure is intended to allow Sharplink to maintain exposure to Ethereum while also generating returns from actively managed on-chain strategies.
Galaxy open Protocol selection, exposure size and ongoing monitoring will be handled within the framework of institutional research and risk management, which is also used in lending, trading and asset management operations. The company added that it has deployed hundreds of millions of dollars in on-chain strategies since 2020 and is among the largest publicly traded companies actively allocating capital to decentralized finance and other blockchain-based investment opportunities.
Novogratz, Founder and CEO of Galaxy, said:
“Institutional capital moves on-chain, and the infrastructure supporting it has matured to the point where distributors can access yield, liquidity, and manage risk with the same rigor they expect in traditional markets. Sharplink has built one of the most significant Ethereum treasuries among public companies, and we are proud to partner with them to put this capital to work in a strategy designed to double their core position.”
Meanwhile, Matthew Sheffield, chief investment officer at Sharplink, said the latest move is “an extension of its treasury strategy into more active strategies”.
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Financial results for the first quarter
Sharplink currently ranks as the second-largest Ethereum treasury, holding approximately 868,700 ETH, behind Bitmine, which He carries About 5.21 million Ethereum. In addition to the announcement of the fund, this was also done I mentioned A huge jump in revenue to $12.1 million in the first quarter of 2026 from just $0.7 million a year earlier, mainly due to the Ethereum treasury strategy. However, the company also recorded a significant net loss of $685.6 million, mostly due to falling ETH prices resulting in unrealized accounting losses and impairment charges on its holdings.
Sharplink said these were paper losses under accounting rules and did not mean it actually sold ETH at a loss or reduced its Ethereum holdings.
