Mike Novogratz’s digital asset firm Galaxy Digital and ETH treasury company Sharplink have signed a non-binding memorandum of understanding to create the Galaxy Sharplink Onchain Yield Fund.
The new private investment vehicle will concentrate on DeFi liquidity protocols and other on-chain strategies designed to generate yield.
$125M Institutional Yield Fund
Per the official announcement, Galaxy will serve as the fund’s investment manager. The fund is expected to launch in the coming weeks with total commitments of $125 million, comprised of $100 million from Sharplink’s staked Ethereum treasury and $25 million from Galaxy.
The strategy aims to identify high-yield opportunities across blockchain-based financial markets by allocating capital to selected on-chain applications. The structure is intended to allow Sharplink to preserve its Ethereum exposure while pursuing returns through actively managed on-chain strategies.
Galaxy stated that protocol selection, exposure sizing, and ongoing monitoring will be governed by its institutional research and risk management framework, the same framework it applies across lending, trading, and asset management. The firm noted it has deployed hundreds of millions of dollars into on-chain strategies since 2020 and is one of the largest publicly traded companies allocating capital to decentralized finance and other blockchain-based investments.
Novogratz, Founder and CEO of Galaxy, commented,
“Institutional capital is moving onchain, 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. Sharplink has built one of the most significant Ethereum treasuries among public companies, and we’re proud to partner with them to put that capital to work in a strategy designed to compound their core position.”
Matthew Sheffield, Sharplink’s Chief Investment Officer, described the initiative as an extension of the company’s treasury strategy into more active allocations.
Q1 Financial Results
Sharplink is currently the second-largest public holder of an Ethereum treasury, with approximately 868,700 ETH, behind Bitmine, which holds roughly 5.21 million ETH. Alongside the fund announcement, Sharplink reported a substantial increase in revenue to $12.1 million in Q1 2026, up from $0.7 million a year earlier, largely driven by its Ethereum treasury strategy.
However, the company also recorded a net loss of $685.6 million, primarily due to unrealized accounting losses and impairment charges resulting from lower ETH prices. Sharplink clarified these were paper losses under accounting rules and did not reflect sales of ETH at a loss or a reduction in its Ethereum holdings.