Galaxy Digital and Sharplink plan to launch an institutional onchain yield fund backed by Sharplink’s Ethereum treasury. The fund has $125 million in initial commitments and will deploy capital across DeFi liquidity protocols and other yield-generating strategies in coming weeks.
According to the announcement, the Galaxy Sharplink Onchain Yield Fund will be structured as a limited partnership. Galaxy will serve as the investment manager and apply its research, exposure sizing, and risk management framework to the strategy.
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SharpLink ETH Treasury Backs Onchain Yield Fund
Sharplink is putting up $100 million of its staked Ethereum treasury. Galaxy will also invest an additional $25 million. The companies said that the arrangement is based on a non-binding memorandum of understanding and is still subject to final documentation.
Sharplink on Monday released its first-quarter 2026 earnings alongside news of the planned $10 million onchain yield fund. The company said it now has 872,984 ETH in its treasury. That figure grew from 864,597 ETH when it peaked in late 2025.
As of 4 May 2026, Sharplink had recorded a total amount of staking rewards since inception equal to 18,800 ETH. Galaxy: The plan is to deploy part of their staked Ethereum treasury into Galaxy’s institutional onchain yield strategies as per the Galaxy partnership.
Sharplink is the second-largest public corporate holder of Ethereum. Bitmine Immersion Technologies holds more than 4.5 million ETH. As Sharplink ramps up its public market ETH-focused treasury strategy, it describes itself as the “MicroStrategy of Ethereum.”
Around $3.2 billion has been accumulated through capital markets to make these acquisitions for Ethereum. Its performance is tracked via ETH per share, which currently stands at 4.01. That initiative continues to be a key part of its market strategy, which is oriented toward treasury.
SharpLink Targets ETH Yield Despite 2025 Loss
Sharplink announced a net loss of $734.6 million for 2025. This result was predominantly due to $616.2 million in unrealized losses on ETH-owned under fair-value accounting rules. However, institutional ownership increased from 6% to 46% during this time period.
Chief Executive Officer Joseph Chalom stated that Sharplink aims to deploy its ETH into higher yield-generating strategies while still keeping an emphasis on risk management. The partnership will allow Galaxy to deploy some of the company’s staked Ethereum treasury into an institutional onchain yield strategy.
Chief Investment Officer Matthew Sheffield said this structure was designed to maintain the staked Ethereum exposure core to SharpLink. He said the strategy is meant to produce excess returns that flow back into the hands of shareholders.
This puts Sharplink one step closer to actively engaging in the world of DeFi with the Galaxy partnership. The onchain yield fund will deploy capital into liquidity protocols and yield-generating applications, retaining Ethereum as the backbone treasury asset of the company.
This structure provides Sharplink with access to additional returns further above the passive staking. Additionally, during setup, the onchain yield fund embeds Galaxy’s back-office asset management process within a DeFi-backed strategy by treasury to provide managed exposure for institutional investors.
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