Galaxy Digital and SharpLink have launched the Galaxy SharpLink Onchain Yield Fund with $125 million to deploy into DeFi protocols.
Abstract
- SharpLink will commit $100 million from its staked ETH treasury to the fund, with Galaxy Digital contributing $25 million and managing investments.
- Capital might be deployed throughout DeFi liquidity protocols and onchain yield methods whereas sustaining SharpLink’s core Ethereum publicity.
- SharpLink holds 872,984 ETH in treasury and has generated 18,800 ETH in staking rewards since launching its Ethereum technique in June 2025.
Galaxy Digital and SharpLink introduced a non-binding settlement on Might 11 to launch the Galaxy Sharplink Onchain Yield Fund, a $125 million restricted partnership structured to place a part of SharpLink’s staked Ethereum treasury to work throughout DeFi methods. Galaxy will function funding supervisor.
SharpLink will contribute $100 million from its staked ETH place, with Galaxy including $25 million of its personal capital. Mike Novogratz, founder and CEO of Galaxy, mentioned the infrastructure for institutional DeFi participation “has matured to some extent the place allocators can entry yield, liquidity, and danger administration with the identical rigor they anticipate in conventional markets.”
What the fund will do
The fund will deploy capital throughout DeFi liquidity protocols and different onchain yield-generating methods. The construction is designed to maintain SharpLink’s core ETH publicity intact whereas including an lively yield layer on high of its current staking operations.
SharpLink CEO Joseph Chalom mentioned the technique goals to offer liquidity to high-quality protocols whereas producing returns above the typical Ethereum staking fee. “Operational rigor is non-negotiable,” he mentioned, noting the fund’s danger administration framework will apply the identical self-discipline Galaxy makes use of throughout its lending, buying and selling, and asset administration companies.
The announcement got here alongside SharpLink’s Q1 2026 earnings, which confirmed income rising to $12.1 million from $742,000 in the identical interval a yr earlier. SharpLink posted a internet lack of $685.6 million for the quarter, pushed by unrealized depreciation in its ETH portfolio as Ethereum fell from roughly $3,354 in mid-January to $2,104 by quarter-end.
SharpLink’s place within the Ethereum ecosystem
SharpLink holds 872,984 ETH and is the second-largest publicly traded company Ethereum holder, behind Bitmine Immersion Applied sciences. Its treasury has generated 18,800 ETH in staking rewards since June 2025 with over 90% of its holdings staked always.
The Galaxy fund marks a significant shift in how public firms are occupied with crypto treasury administration, transferring past passive staking towards lively DeFi deployment. Galaxy additionally launched a separate tokenized money fund with State Avenue final week constructed on Solana, signalling a broader push by the agency into institutional onchain yield infrastructure.
