Ethereum Firm Sharplink Posts $686 Million Loss, Kicks Off $125M Yield Fund With Galaxy

In brief

• Ethereum treasury firm Sharplink posted a Q1 net loss of nearly $686 million.
• The loss is significantly higher than its reported net loss in Q1 of 2025, which was less than $1 million.
• The firm also announced a $125 million on-chain yield fund in partnership with Galaxy.

Publicly traded Ethereum treasury firm Sharplink announced a net loss of nearly $686 million in Q1, almost $507 million of which it attributed to unrealized losses from its Ethereum treasury. 

The loss is significantly greater than the same period last year, when the firm reported a net loss of just $1 million. 

"Generating risk-adjusted, ETH-denominated returns through active treasury management is the foundation of everything we do at Sharplink," said Sharplink CEO Joseph Chalom, in a statement.

"During the quarter, we deployed our ETH capital with discipline, internalized the majority of our asset management platform, and have moved beyond foundational staking into a broader set of on-chain opportunities,” he added. 

The firm also saw an increase in revenues, jumping from less than $1 million during Q1 last year to more than $12 million in 2026, thanks to its staked Ethereum treasury. 

“With a growing permanent capital base and a comprehensive risk-management framework, we have built a platform designed to provide shareholder value across market cycles,” said Chalom. 

In addition to its first quarter results, the firm also announced plans to create a $125 million on-chain yield fund in collaboration with Galaxy Digital. Starting with $100 million from Sharplink’s staked ETH treasury and $25 million from Galaxy, the fund will seek to “capture high-yielding opportunities in blockchain-based financial markets by allocating to promising applications.”

“Institutional capital is moving on-chain, 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," said Galaxy founder and CEO Mike Novogratz, in a statement. 

While the bulk of the financial commitment is coming from Sharplink, Galaxy will be responsible for “protocol selection, exposure sizing, and ongoing monitoring,” of the on-chain deployments. 

Shares in Sharplink (SBET) have risen around 2% following the news, recently changing hands at $7.59. The firm, which holds around 872,984 ETH or about $2.1 billion worth of the asset, has seen its shares increase by about 16% in the last month of trading. However, SBET shares have fallen around 34% in the last six months of trading.