Key Takeaways
- • Galaxy Digital (Nasdaq: GLXY) and Sharplink (Nasdaq: SBET) signed a non-binding memorandum of understanding to form the Galaxy Sharplink Onchain Yield Fund, LP, a private vehicle deploying capital across DeFi liquidity protocols and other onchain yield strategies.
- • The fund is planned to launch in the coming weeks with $125 million in commitments: $100 million from Sharplink's staked Ethereum treasury and $25 million from Galaxy.
- • Galaxy will act as investment manager, applying its institutional research and risk management framework to protocol selection, exposure sizing and ongoing monitoring.
- • The structure lets Sharplink keep its core Ethereum exposure while putting part of its treasury to work in actively managed onchain strategies, which the companies frame as extending digital asset treasuries beyond passive holding.
- • The deal remains subject to definitive documentation, and the release flags risks including smart contract exploits, DeFi protocol failures, regulatory change and Ethereum price volatility.
Summary
Galaxy Digital Inc. (Nasdaq: GLXY) and Sharplink Inc. (Nasdaq: SBET) announced on May 11, 2026 that they have entered a non-binding memorandum of understanding, subject to definitive documentation, to form the Galaxy Sharplink Onchain Yield Fund, LP (the "Fund"). The Fund is a private investment vehicle that will deploy capital across decentralized finance liquidity protocols and other onchain yield-generating strategies, with Galaxy serving as investment manager. According to the GlobeNewswire release, the Fund is planned to launch in the coming weeks.
The Fund is expected to receive commitments totaling $125 million, consisting of $100 million from Sharplink's staked Ethereum treasury and $25 million from Galaxy. The companies describe the structure as allowing Sharplink to preserve its core Ethereum exposure while deploying balance-sheet capital into higher-yielding opportunities in blockchain-based financial markets. Galaxy says protocol selection, exposure sizing and ongoing monitoring will be governed by its institutional research and risk management framework, the same discipline it applies across its lending, trading and asset management businesses. The release states Galaxy has deployed hundreds of millions of dollars onchain since 2020 and describes itself as among the largest publicly traded companies actively allocating to onchain strategies.
Mike Novogratz, Founder and CEO of Galaxy, said institutional capital is moving onchain and that the infrastructure now allows allocators to access yield, liquidity and risk management with the rigor they expect in traditional markets. Sharplink CEO Joseph Chalom said the fund extends the company's goal of making its ETH "maximally productive" while maintaining high risk standards, and that it aims to compound the treasury while contributing to the onchain financial ecosystem. Sharplink Chief Investment Officer Matthew Sheffield said the structure aims to preserve core staked Ethereum exposure while generating excess returns for shareholders, and described the move as an extension of Sharplink's treasury strategy into more active strategies.
The release carries substantial risk disclosures. It notes the Fund may not launch on the anticipated timeline or at all, that commitments may not be funded, and that Fund strategies may result in losses. Cited DeFi risks include smart contract vulnerabilities, protocol failures, liquidity risk, impermanent loss, governance risk and the potential for total loss of capital deployed onchain. The companies also flag changes in digital asset regulation and the risk that falling Ethereum prices could materially affect both the Fund's holdings and Sharplink's treasury. Galaxy describes itself as a digital assets and data center infrastructure company with a 1.6 GW Helios campus in Texas, while Sharplink, founded in 2019 and headquartered in Miami, positions itself as an institutional-grade Ethereum treasury platform.
The Fund is expected to receive commitments totaling $125 million, consisting of $100 million from Sharplink's staked Ethereum treasury and $25 million from Galaxy. The companies describe the structure as allowing Sharplink to preserve its core Ethereum exposure while deploying balance-sheet capital into higher-yielding opportunities in blockchain-based financial markets. Galaxy says protocol selection, exposure sizing and ongoing monitoring will be governed by its institutional research and risk management framework, the same discipline it applies across its lending, trading and asset management businesses. The release states Galaxy has deployed hundreds of millions of dollars onchain since 2020 and describes itself as among the largest publicly traded companies actively allocating to onchain strategies.
Mike Novogratz, Founder and CEO of Galaxy, said institutional capital is moving onchain and that the infrastructure now allows allocators to access yield, liquidity and risk management with the rigor they expect in traditional markets. Sharplink CEO Joseph Chalom said the fund extends the company's goal of making its ETH "maximally productive" while maintaining high risk standards, and that it aims to compound the treasury while contributing to the onchain financial ecosystem. Sharplink Chief Investment Officer Matthew Sheffield said the structure aims to preserve core staked Ethereum exposure while generating excess returns for shareholders, and described the move as an extension of Sharplink's treasury strategy into more active strategies.
The release carries substantial risk disclosures. It notes the Fund may not launch on the anticipated timeline or at all, that commitments may not be funded, and that Fund strategies may result in losses. Cited DeFi risks include smart contract vulnerabilities, protocol failures, liquidity risk, impermanent loss, governance risk and the potential for total loss of capital deployed onchain. The companies also flag changes in digital asset regulation and the risk that falling Ethereum prices could materially affect both the Fund's holdings and Sharplink's treasury. Galaxy describes itself as a digital assets and data center infrastructure company with a 1.6 GW Helios campus in Texas, while Sharplink, founded in 2019 and headquartered in Miami, positions itself as an institutional-grade Ethereum treasury platform.
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