Galaxy Digital, led by Mike Novogratz, has partnered with Sharplink to introduce the Galaxy Sharplink Onchain Yield Fund, as outlined in a non-binding memorandum of understanding. This innovative private investment fund will prioritize DeFi liquidity protocols and various on-chain yield-generating strategies, with a total commitment of $125 million. Galaxy will serve as the fund’s investment manager, leveraging $100 million from Sharplink’s staked Ethereum treasury alongside $25 million from Galaxy itself. The fund aims to pinpoint high-yield opportunities in blockchain financial markets by strategically investing in select on-chain applications, allowing Sharplink to preserve its Ethereum exposure while yielding returns from actively managed strategies. Galaxy will oversee protocol selection, exposure sizing, and ongoing monitoring within its institutional research and risk management framework, which has been effectively utilized across its lending, trading, and asset management endeavors. Since 2020, the firm has allocated hundreds of millions into on-chain strategies, establishing itself as one of the largest publicly traded entities focused on decentralized finance and blockchain investments. Novogratz remarked, “Institutional capital is moving onchain, and the infrastructure is now sophisticated enough for allocators to pursue yield, liquidity, and risk management comparable to that in traditional markets. Partnering with Sharplink allows us to activate their significant Ethereum treasury in a strategy focused on compounding their core position.” Sharplink’s Chief Investment Officer, Matthew Sheffield, noted that this initiative extends their treasury strategy into more active investment approaches. Currently, Sharplink ranks as the second-largest Ethereum treasury holder, maintaining approximately 868,700 ETH, following Bitmine, which holds around 5.21 million ETH. Along with this fund launch, Sharplink reported a substantial increase in revenue for Q1 2026, soaring to $12.1 million from a mere $0.7 million year-over-year, primarily driven by its Ethereum treasury strategy. However, the company also incurred a significant net loss of $685.6 million, largely attributable to unrealized losses from decreasing ETH prices. Sharplink clarified that these figures reflect accounting adjustments rather than actual sales at a loss or reductions in Ethereum holdings.
