Galaxy Digital and SharpLink have launched a $125 million onchain yield fund designed to put corporate ETH treasuries to work across DeFi.
Under a non-binding agreement announced May 11, the Galaxy SharpLink Onchain Yield Fund will operate as a $125 million limited partnership that taps part of SharpLink’s staked Ethereum holdings for active onchain strategies. SharpLink is contributing $100 million from its staked ETH position and Galaxy is putting in $25 million and will act as investment manager.
The fund will allocate capital across DeFi liquidity protocols and other onchain yield-generating strategies while preserving SharpLink’s core ETH exposure — effectively layering an active yield program on top of existing staking operations. Galaxy founder and CEO Mike Novogratz said institutional infrastructure for DeFi “has matured to a point where allocators can access yield, liquidity, and risk management with the same rigor they expect in traditional markets.”
SharpLink CEO Joseph Chalom framed the fund as a way to provide liquidity to “high-quality protocols” and to target returns above the average Ethereum staking rate, stressing that “operational rigor is non‑negotiable.” He said the fund will use the same risk management disciplines Galaxy applies across its lending, trading, and asset management businesses.
The announcement accompanied SharpLink’s Q1 2026 results. Revenue rose to $12.1 million from $742,000 a year earlier, but the company reported a net loss of $685.6 million, driven by unrealized depreciation in its ETH portfolio as Ethereum slid from roughly $3,354 in mid‑January to about $2,104 at quarter‑end.
SharpLink holds 872,984 ETH, making it the second‑largest publicly traded corporate Ethereum holder after Bitmine Immersion Technologies. The firm says its treasury has generated 18,800 ETH in staking rewards since June 2025, with more than 90% of its holdings staked at all times.
The Galaxy SharpLink fund underscores a broader shift in corporate crypto treasury management — moving beyond passive staking toward active DeFi deployment — and complements Galaxy’s recent push into institutional onchain yield infrastructure. Last week, Galaxy also launched a tokenized cash fund built on Solana in partnership with State Street, signaling continued efforts to productize onchain yield for institutional investors.
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