Galaxy and Sharplink announced a new private fund designed to leverage decentralized finance (DeFi) strategies to maximize returns on Ether holdings. Named the Galaxy Sharplink Onchain Yield Fund, it is set to debut soon with $125 million in initial capital. Sharplink will contribute the bulk of the assets, allocating $100 million from its staked Ether treasury, while Galaxy commits $25 million and will manage the fund’s operations.
The fund’s approach centers on deploying capital into DeFi liquidity protocols and other yield-generating onchain opportunities. This strategy aims to boost returns beyond simple Ether appreciation, enabling Sharplink to keep long-term exposure to ETH while generating consistent income streams. The initiative reflects growing interest among institutional investors in blockchain-based financial products that combine yield generation with risk management techniques similar to traditional asset management.
Sharplink remains one of the largest corporate ETH holders, with a balance sheet containing over 868,000 Ether. At its peak valuation in October, those assets were worth nearly $4 billion. Despite recent headwinds from Ether’s volatile price movements, Sharplink has maintained its Ethereum treasury strategy and continues to expand it.
The company disclosed a substantial first-quarter loss driven primarily by accounting write-downs tied to Ether’s price decline. Sharplink’s net loss totaled $685.6 million, mainly due to $506.7 million in unrealized losses on their ETH holdings, as prices fell from about $3,354 in mid-January to around $2,104 at the end of March. Despite this, revenue increased significantly to $12.1 million from $700,000 a year earlier, signaling growth in active business operations.
Since initiating its Ether treasury strategy, Sharplink has accumulated approximately 18,800 ETH through staking rewards, which supplements the fund’s yield potential. At the end of the quarter, the company held nearly $17 million in cash reserves.
This latest fund launch exemplifies the risks and opportunities inherent in crypto treasury management, where asset price swings heavily influence financial performance. Other firms with significant crypto treasuries have faced similar volatility, prompting moves toward diversification and yield optimization through DeFi.