Galaxy Digital and SharpLink have teamed up to create a new $125 million fund focused on investing in decentralized finance (DeFi) applications.
Summary
- SharpLink will commit $100 million from its staked ETH treasury to the fund, with Galaxy Digital contributing $25 million and managing investments.
- Capital will be deployed across DeFi liquidity protocols and onchain yield strategies while maintaining SharpLink’s core Ethereum exposure.
- SharpLink holds 872,984 ETH in treasury and has generated 18,800 ETH in staking rewards since launching its Ethereum strategy in June 2025.
On May 11th, Galaxy Digital and SharpLink announced a preliminary agreement to create the Galaxy Sharplink Onchain Yield Fund. This $125 million fund will use a portion of SharpLink’s Ethereum holdings to earn returns through various DeFi (decentralized finance) methods, with Galaxy Digital managing the investments.
SharpLink is contributing $100 million worth of its staked Ethereum, and Galaxy Digital is adding another $25 million. According to Galaxy’s CEO, Mike Novogratz, the technology for institutions to participate in DeFi (decentralized finance) has improved enough that they can now manage risk, access liquidity, and earn returns with the same level of sophistication they’re used to in traditional financial markets.
What the fund will do
This fund will invest in ways to earn rewards within the decentralized finance (DeFi) space, focusing on platforms that provide liquidity and other on-chain strategies for generating returns. It’s structured to maintain SharpLink’s current holdings of ETH while also adding opportunities to actively earn more on top of their existing staking activities.
According to SharpLink CEO Joseph Chalom, their new approach is designed to both support strong crypto projects with funding and earn returns that beat typical Ethereum staking rates. He emphasized that careful and reliable operations are essential, and the fund will use the same strict risk management practices that Galaxy Digital employs in its lending, trading, and investment businesses.
SharpLink announced these results as part of its first-quarter 2026 earnings report. Revenue jumped to $12.1 million, a significant increase from $742,000 in the same quarter last year. However, the company reported a net loss of $685.6 million for the quarter, largely due to a decrease in the value of its Ethereum holdings. The price of Ethereum fell from around $3,354 in mid-January to $2,104 by the end of the quarter.
SharpLink’s position in the Ethereum ecosystem
SharpLink currently holds a significant amount of Ethereum – 872,984 ETH – making it the second-largest publicly traded company to do so, after Bitmine Immersion Technologies. Since June 2025, they’ve earned 18,800 ETH in staking rewards, and consistently stake over 90% of their total holdings.
The Galaxy fund represents a significant change in how publicly traded companies manage their cryptocurrency holdings. They’re moving past simply holding crypto to actively using it in decentralized finance (DeFi) applications. Last week, Galaxy also partnered with State Street to launch a new fund that uses tokenized cash built on the Solana blockchain, showing the company is expanding its efforts to provide yield-generating infrastructure for institutional investors in the crypto space.
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2026-05-12 21:30