⦿ Executive Snapshot

• What: Galaxy Digital is managing Sharplink’s new $125 million onchain yield fund.
• Who: Galaxy Digital and Sharplink.
• Why it matters: This collaboration marks a strategic shift in Sharplink's treasury management by integrating DeFi strategies with its ETH holdings.

⦿ Key Developments

• Galaxy Digital will manage the Galaxy Sharplink Onchain Yield Fund, receiving $100 million from Sharplink’s staked ETH treasury and $25 million from Galaxy itself.
• The fund aims to deploy capital across DeFi liquidity protocols and onchain yield strategies while maintaining Sharplink's core ETH exposure.
• Sharplink currently holds 872,984 ETH and has generated 18,800 ETH in staking rewards since launching its ether treasury strategy in June 2025.

⦿ Strategic Context

• The partnership indicates a growing trend among traditional asset holders to explore decentralized finance as a means to enhance yield on their digital assets.
• This move reflects the increasing interest in onchain yield strategies that allow companies to leverage their crypto assets while maintaining their core positions.

⦿ Strategic Implications

• The immediate consequence could be a more robust treasury model for Sharplink, potentially leading to greater returns for stakeholders.
• In the long term, this initiative could pave the way for further institutional adoption of DeFi strategies, influencing market dynamics.

⦿ Risks & Constraints

• Potential regulatory challenges could arise as both companies navigate the evolving landscape of DeFi and cryptocurrency regulations.
• Dependence on the performance of DeFi liquidity protocols may expose Sharplink to market volatility and execution risks.

⦿ Watchlist / Forward Signals

• The investment strategy is set to commence in the coming weeks, as per the non-binding memorandum of understanding.
• Monitoring the performance of the Galaxy Sharplink Onchain Yield Fund will be crucial to assess its impact on Sharplink’s overall treasury strategy and returns.