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 investing 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 serve 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 ETH exposure while deploying part of its treasury into actively managed onchain strategies, with excess returns intended to accrue to its shareholders.
Summary
Galaxy Digital Inc. and Sharplink Inc. 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"). According to the companies' press release distributed via PR Newswire, the Fund will be a private investment vehicle that deploys capital across decentralized finance liquidity protocols and other onchain yield-generating strategies, with Galaxy acting as investment manager.
The Fund is planned to launch in the coming weeks and will receive commitments totaling $125 million, comprising $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 putting balance-sheet capital to productive use, extending the role of digital asset treasuries beyond passive holding into actively managed onchain strategies.
Galaxy said protocol selection, exposure sizing and ongoing monitoring will be governed by the same institutional research and risk management framework it applies across its lending, trading and asset management businesses. The firm states it has deployed hundreds of millions of dollars onchain since 2020 and is 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 has matured enough for allocators to access yield, liquidity and risk management with the rigor expected in traditional markets. Sharplink CEO Joseph Chalom said the fund aims to make Sharplink's ETH "maximally productive" while compounding its treasury. Matthew Sheffield, Sharplink's Chief Investment Officer, said the fund extends the company's treasury strategy into more active strategies and is aimed at generating returns for shareholders while preserving core staked ETH exposure.
The companies caution that the Fund may not launch on the anticipated timeline or at all, that commitments may not be funded, and that the strategies may result in losses. Risks flagged include smart contract vulnerabilities, protocol failures, liquidity and governance risks, regulatory uncertainty, and volatility in Ethereum prices, which could materially affect both the Fund's holdings and Sharplink's treasury.
The Fund is planned to launch in the coming weeks and will receive commitments totaling $125 million, comprising $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 putting balance-sheet capital to productive use, extending the role of digital asset treasuries beyond passive holding into actively managed onchain strategies.
Galaxy said protocol selection, exposure sizing and ongoing monitoring will be governed by the same institutional research and risk management framework it applies across its lending, trading and asset management businesses. The firm states it has deployed hundreds of millions of dollars onchain since 2020 and is 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 has matured enough for allocators to access yield, liquidity and risk management with the rigor expected in traditional markets. Sharplink CEO Joseph Chalom said the fund aims to make Sharplink's ETH "maximally productive" while compounding its treasury. Matthew Sheffield, Sharplink's Chief Investment Officer, said the fund extends the company's treasury strategy into more active strategies and is aimed at generating returns for shareholders while preserving core staked ETH exposure.
The companies caution that the Fund may not launch on the anticipated timeline or at all, that commitments may not be funded, and that the strategies may result in losses. Risks flagged include smart contract vulnerabilities, protocol failures, liquidity and governance risks, regulatory uncertainty, and volatility in Ethereum prices, which could materially affect both the Fund's holdings and Sharplink's treasury.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.