- SharpLink deploys $170M ETH to Linea, combining staking rewards, incentives, and institutional-grade security for higher returns.
- The company manages 864,840 ETH, making it the second-largest publicly traded Ethereum holder after strategic Layer-2 deployment.
- Linea’s Layer-2 network reduces Ethereum costs and speeds transactions, showcasing corporate adoption of decentralized finance solutions.
SharpLink Gaming made a bold move by transferring $170 million of Ethereum to Linea, a Layer-2 network designed to speed up transactions and reduce Ethereum costs. The Minneapolis-based, publicly traded company announced the deployment Thursday as part of its broader plan to optimize its sizable Ethereum holdings.
Holding one of the largest ETH treasuries among public companies, SharpLink previously revealed intentions to invest up to $200 million more in Ethereum over the coming years.
“Now is a pivotal moment for public companies to engage with DeFi,” said Matt Sheffield, SharpLink’s Chief Investment Officer. Sheffield explained the initiative combines Ethereum’s native yield, restaking rewards from EigenLayer, and direct incentives from Linea and EtherFi. “This is the most productive way to hold ETH with institutional-grade infrastructure. That’s the SharpLink edge,” he added.
Institutional Ethereum Strategy
SharpLink’s ETH strategy focuses on maximizing returns while ensuring security and governance participation. The company has pledged all its Ethereum to Figure Ethereum Staking Rewards.
Additionally, SharpLink retains custody through Anchorage, providing institutional-grade security. Sheffield indicated the company could negotiate more similar deals, provided they serve shareholders’ interests. Consequently, SharpLink aims to demonstrate how public corporations can safely engage with DeFi at scale.
Despite the announcement, SharpLink’s stock rose modestly, ending Thursday at $10.28, a 1.4% increase. However, the shares remain down over 33% since the staking roadmap report in October, reflecting changing investor expectations. Currently, the firm manages 864,840 ETH, roughly $2.7 billion at today’s rates, making it the second-largest publicly traded Ethereum holder.
Linea and Layer-2 Adoption
Linea processes Ethereum transactions off-chain, reducing costs and enhancing speed. The network gained traction after introducing its token in September, though total value locked (TVL) has fallen 89% to about $185.74 million from a $1.64 billion peak.
SharpLink’s chairman, Joseph Lubin, co-founded Ethereum and leads Consensys, which incubated Linea. SharpLink also participates in the Linea Consortium, guiding governance and token distribution.
SharpLink’s approach emphasizes long-term institutional DeFi adoption. Sheffield calls this a “new on-chain paradigm” for capital markets. By leveraging advanced staking, bridging, and custody solutions, the company aims to set an example for other public firms. Moreover, it positions Ethereum as foundational for future global financial infrastructure, not just a digital asset.
