SharpLink, Inc. (SBET) shares gained 2.23% to close at $6.43 on news that the company partnered with Galaxy Digital to launch a $125 million onchain yield fund. The stock eased 0.16% in after-hours trading to $6.42 during Friday's extended session.

The newly created Galaxy SharpLink Onchain Yield Fund carries $125 million in committed capital. SharpLink contributed $100 million through assets backed by its staked Ethereum treasury, while Galaxy Digital added $25 million and will manage the fund via its digital asset platform.

Fund Structure and Strategy

The fund will target selected onchain yield strategies and other identified digital asset opportunities. Galaxy will deploy capital based on proprietary research, protocol reviews, and internal risk controls before selecting allocations. Onchain yield strategies typically involve lending, liquidity provision, or staking through decentralized finance protocols, where returns are generated by blockchain-based smart contracts rather than traditional intermediaries. The arrangement gives SharpLink an additional avenue for generating returns from its Ethereum holdings.

The partnership extends an existing relationship between the two firms. SharpLink's ETH treasury assets are now paired with Galaxy's institutional digital asset management capabilities, signaling a focus on active blockchain participation rather than passive asset ownership.

Expanding Beyond Traditional Staking

SharpLink has positioned Ethereum at the center of its corporate treasury strategy. The company already stakes ETH to earn network rewards, but the new fund opens a broader pathway for deploying treasury assets onchain. SharpLink, originally known for online sports betting and fantasy sports operations, has increasingly pivoted toward an Ethereum-focused treasury model, placing it among a small group of public companies using digital assets as a core part of their balance sheet strategy.

Galaxy's evaluation process includes protocol-level analysis and structured risk frameworks before capital is allocated across blockchain protocols. SharpLink expects this disciplined approach to support a measured expansion of its treasury operations.

The fund may also channel capital toward emerging crypto protocols that require early onchain activity. Many blockchain projects secure venture funding but still struggle to generate meaningful usage. SharpLink views targeted deployment as a way to support ecosystem activity while pursuing potential returns.

Broader Shift in Corporate Digital Asset Treasuries

The initiative reflects an evolving approach to corporate digital asset management. Traditional strategies have centered on purchasing assets and earning staking rewards, but newer structures enable companies to pursue additional yield through blockchain-based financial markets. The move comes as a growing number of publicly traded companies explore holding digital assets on their balance sheets, with Ethereum attracting particular attention following the launch of U.S. spot ETH exchange-traded funds.

Galaxy, founded by billionaire investor Michael Novogratz, has been deploying capital across digital asset markets since 2020, building investment products around crypto markets, infrastructure, and institutional asset management. The firm is one of the most established institutional players in digital assets, with operations spanning trading, asset management, and investment banking. Its involvement gives SharpLink access to an established platform for evaluating onchain opportunities.

For SharpLink, the fund broadens its Ethereum strategy without replacing its existing staking program. The company now operates a dedicated vehicle for selected onchain yield deployments, further tying SBET to institutional Ethereum adoption and active treasury management in digital asset markets.