Summary Points
- Sharplink, the second-largest Ethereum treasury with around 868,700 ETH, partners with Galaxy Digital to launch a $125M DeFi-focused Onchain Yield Fund.
- Galaxy will manage the fund, aiming to identify high-yield opportunities across blockchain markets while allowing Sharplink to maintain its Ethereum exposure.
- The fund, backed by $100M from Sharplink’s ETH treasury and $25M from Galaxy, is set to launch soon, emphasizing active on-chain strategies and risk management.
- Despite a revenue jump to $12.1M in Q1 2026, Sharplink reported a $685.6M net loss due to falling ETH prices, highlighting paper losses rooted in accounting rules.
Mike Novogratz’s Galaxy and Sharplink Launch $125M Ethereum-Powered DeFi Yield Fund
New Partnership for DeFi Investments
Mike Novogratz’s firm, Galaxy Digital, and Sharplink, a major Ethereum treasury holder, announced a new plan. They signed an agreement to create the Galaxy Sharplink Onchain Yield Fund. This fund aims to focus on decentralized finance (DeFi), specifically liquidity protocols and yield strategies. Galaxy will manage the fund’s investments. The fund should launch soon, with $125 million in total commitments. Sharplink plans to contribute $100 million of its Ethereum holdings, while Galaxy adds $25 million. The fund’s goal is to identify high-yield opportunities on blockchain platforms. It will invest in selected on-chain applications. The structure allows Sharplink to keep its Ethereum exposure and earn returns from active strategies. Galaxy will use its risk management systems to select protocols and monitor investments. This approach follows its past of deploying large amounts into DeFi and blockchain investments since 2020.
Market Impact and Financial Performance
Novogratz highlighted that more institutional investors are moving on-chain. He said infrastructure now supports access to yield, liquidity, and risk management similar to traditional markets. Sharplink holds about 868,700 Ethereum, making it the second-largest Ethereum treasury behind Bitmine. The company reported a significant increase in revenue, reaching $12.1 million in the first quarter of 2026. This jump mainly results from its Ethereum treasury strategy. However, it also posted a large net loss of $685.6 million. This loss came largely from falling ETH prices, which created unrealized accounting losses. Sharplink clarified these were paper losses under accounting rules, not actual sales of ETH. The new fund reflects the company’s shift toward more active, yield-generating strategies in its crypto assets.
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