Galaxy Digital and Sharplink Plan $125M Ethereum-Backed DeFi Yield Fund
Galaxy Digital, the digital asset firm led by Mike Novogratz, and Sharplink, an ETH-focused treasury company, said they have signed a nonbinding memorandum of understanding to create the Galaxy Sharplink Onchain Yield Fund.
The proposed private fund will target returns from DeFi liquidity protocols and other onchain yield strategies. Galaxy is set to serve as investment manager, with a launch expected in the coming weeks.
Total commitments are expected to reach $125 million, made up of $100 million sourced from Sharplink's staked Ethereum treasury and $25 million from Galaxy. The mandate will seek higher-yield opportunities across blockchain-based financial markets by allocating capital to selected onchain applications, allowing Sharplink to keep its ETH exposure while pursuing actively managed onchain returns.
Galaxy said protocol selection, position sizing, and ongoing monitoring will be conducted under its institutional research and risk management framework, which it also applies across lending, trading, and asset management. The firm added it has deployed hundreds of millions of dollars into onchain strategies since 2020 and is among the largest publicly traded companies allocating capital to decentralized finance and related blockchain investment opportunities.
"Institutional capital is moving onchain, and the infrastructure to support it has matured to a point where allocators can access yield, liquidity, and risk management with the same rigor they expect in traditional markets," Novogratz said. He added that Sharplink has built one of the largest Ethereum treasuries among public companies and that the partnership aims to compound its core ETH position.
Sharplink Chief Investment Officer Matthew Sheffield described the initiative as an extension of the company's treasury strategy into more active approaches.
Sharplink ranks as the second-largest Ethereum treasury company, holding about 868,700 ETH, behind Bitmine at roughly 5.21 million ETH.
Separately, Sharplink reported first-quarter 2026 revenue of $12.1 million, up from $0.7 million a year earlier, attributing the increase primarily to its Ethereum treasury strategy. The company also posted a net loss of $685.6 million, largely tied to unrealized accounting losses and impairment charges driven by weaker ETH prices. Sharplink said the losses were non-cash under accounting rules and did not reflect ETH sales at a loss or a reduction in its Ethereum holdings.
