Sharplink posts $686M Q1 loss, unveils $125M ETH fund

Sharplink reported a $686 million net loss for the first quarter of 2026, attributing roughly $507 million of the shortfall to unrealized declines in the market value of its Ethereum holdings. The company said revenue for the quarter rose to more than $12 million, driven by income from its staked ETH treasury. The firm reported a net loss of less than $1 million in Q1 2025.

The company announced a $125 million on-chain yield fund in partnership with Galaxy. The fund will begin with $100 million from Sharplink’s staked ETH treasury and $25 million from Galaxy. Galaxy will handle protocol selection, exposure sizing and ongoing monitoring of the fund’s deployments. Sharplink did not provide a timetable for initial allocations or name specific protocol targets.

Joseph Chalom, Sharplink’s chief executive, said in a statement that the firm has been deploying ETH capital and internalizing the majority of its asset management platform. “Generating risk-adjusted, ETH-denominated returns through active treasury management is the foundation of everything we do at Sharplink,” he wrote, adding that the company has moved beyond basic staking into a broader set of on-chain opportunities and has built a permanent capital base and risk-management framework.

Galaxy founder and CEO Mike Novogratz commented that institutional capital is moving on-chain and that infrastructure has matured to allow allocators to access yield, liquidity and risk management with the same rigor as traditional markets. The partners did not disclose expected returns for the fund.

Market reaction was muted. Sharplink shares (SBET) traded about 2% higher after the announcement, around $7.59, reflecting a roughly 16% gain over the past month and a 34% decline over six months. Galaxy’s stock (GLXY) traded near $30.92 and has risen about 43% in the past month. Sharplink reported holding approximately 872,984 ETH, which it values at about $2.1 billion on its balance sheet.

Sharplink said operating revenue expanded due to its staked ETH program while mark-to-market swings in ETH produced a large unrealized loss for the quarter. The company did not disclose expected recovery timing for the unrealized losses or projected returns from the new fund.

Sharplink is a publicly traded treasury management firm with a concentrated position in Ethereum. The agreement with Galaxy pools capital and assigns protocol selection and monitoring to an established digital-asset manager as the firms deploy on-chain yield strategies.