SharpLink Deploys $200M ETH on Linea for Enhanced Yield

SharpLink Gaming, the second-largest publicly traded holder of Ethereum with nearly 860,000 ETH worth approximately $3.56 billion, announced a strategic $200 million deployment from its corporate treasury onto Linea, the layer-2 network created by Consensys. This deployment will unfold over multiple years using what the company describes as “risk-managed strategies,” representing one of the most significant institutional moves into Ethereum’s layer-2 ecosystem. The initiative comes as Ethereum shows signs of recovery, rising 8% over the last seven days to $4,169 after dipping below $3,700 earlier this month.

Joseph Chalom, Co-CEO of SharpLink Gaming, emphasized the institutional rigor behind this decision, stating: “As one of the largest public holders of ETH, we manage our treasury with institutional rigor and discipline. This deployment enables us to access the best of Ethereum’s staking, restaking and DeFi yield, while maintaining the institutional safeguards our stockholders expect.” The company’s share price, trading under ticker SBET, showed positive momentum following the announcement, recently trading at $14.34.

The yield generation strategy employs three distinct revenue streams designed to maximize returns while maintaining security protocols. The first component involves native Ethereum staking rewards, providing baseline returns from securing the Ethereum network. The second layer incorporates restaking rewards through EigenLayer’s Autonomous Verifiable Services (AVS), allowing SharpLink to earn additional yield by securing other services built on Ethereum. The third revenue stream comes from incentives provided by Linea and its partner Ether.fi, creating a comprehensive yield-generation framework.

All operations will maintain institutional-grade security through Anchorage Digital Bank, SharpLink’s designated ETH custodian. This security framework addresses concerns about corporate treasury management in the crypto space, particularly for publicly traded companies with significant digital asset holdings. The multi-year deployment timeline suggests a measured, strategic approach rather than a rapid allocation, allowing the company to adapt to market conditions and optimize deployment timing.

Beyond immediate yield generation, the partnership between SharpLink and Consensys aims to pioneer institutional capital markets infrastructure on Ethereum. The collaboration focuses on developing on-chain capital raises, programmable liquidity tools, and tokenized equity strategies that could transform how institutions interact with blockchain technology. Chalom described this as “a foundational step in our broader strategy to responsibly generate enhanced staking yield and optimize treasury performance in a way that maximizes stockholder value.”

SharpLink’s membership in the Linea Consortium positions the company at the forefront of layer-2 adoption and development. The consortium, comprising various firms and projects, helps distribute token rewards and drive network adoption. Chalom had previously indicated the company’s interest in Linea’s yield opportunities ahead of last month’s LINEA token launch, telling Decrypt in early September: “When you hold billions of dollars of ETH and you’re looking at a portfolio of staking, there is going to be an ability to deploy that through staking opportunities on Linea.”

The broader market sentiment appears aligned with SharpLink’s strategic direction. Users on Myriad, a prediction market created by Decrypt’s parent company Dastan, remain bullish on Ethereum’s prospects, giving a nearly 79% chance of ETH rising to $4,500 sooner than it could plunge to $3,100. This institutional deployment by one of Ethereum’s largest public holders could signal growing confidence in both Ethereum’s long-term value and the viability of layer-2 solutions for corporate treasury management.