PartnershipMay 11, 2026, 08:21 AM
Sharplink & Galaxy Plan $125M Onchain Yield Fund; Q1 Net Loss $685.6M
AI Summary
Sharplink, Inc. announced a non-binding plan with Galaxy Digital to form the Galaxy Sharplink Onchain Yield Fund, LP, a private investment vehicle with $125 million in commitments. Concurrently, the company reported its Q1 2026 financial results, showing a material increase in total revenue to $12.1 million, primarily from its actively managed ETH treasury strategy. However, the net loss significantly widened to $685.6 million, mainly due to non-cash unrealized losses and impairment charges on crypto assets, which do not reduce the number of ETH held. Sharplink's ETH holdings grew to 872,984 ETH, and ETH per share more than doubled.
Key Highlights
- Sharplink and Galaxy Digital plan to form the Galaxy Sharplink Onchain Yield Fund, LP, a private investment vehicle.
- The Fund is expected to receive $125 million in commitments, with $100 million from Sharplink's staked Ethereum treasury and $25 million from Galaxy.
- Total revenue materially increased to $12.1 million in Q1 2026, up from $0.7 million in Q1 2025, driven by ETH treasury strategy.
- Net loss was $685.6 million in Q1 2026, compared to $1.0 million in Q1 2025, primarily due to $506.7 million unrealized loss on ETH and $191.7 million LsETH impairment.
- Sharplink's ETH holdings totaled 872,984 ETH as of May 4, 2026.
- Total staking rewards since June 2025 increased to 18,800 ETH.
- ETH per share (ETH Concentration) more than doubled from 2.0 to 4.02 since June 2025.
- SG&A expenses rose to $9.9 million in Q1 2026 from $1.1 million in Q1 2025 due to investments in infrastructure, talent, and systems.