SharpLink Gaming, one of the largest publicly traded Ethereum treasury firms, has announced the transfer of $170 million worth of ETH to Linea, a Layer-2 Ethereum scaling network developed by Consensys. SharpLink's multi-year treasury program is a clear step from planning to execution, and this move represents one of the largest institutional deployments of Ethereum into Decentralized Finance (DeFi) ever.
NEW: We just deployed $170M ETH with first-of-it’s-kind enhanced yield on @LineaBuild.
— SharpLink (SBET) (@SharpLink) January 8, 2026
This combines native Ethereum yield, restaking rewards from @eigencloud and direct incentives from @LineaBuild and @ether_fi, all within an institutional-grade qualified custodian thanks to… pic.twitter.com/kMgB40dKwP
SharpLink launches Ethereum treasury strategy on Linea
SharpLink, which manages approximately 864,840 ETH valued at nearly $2.7 billion, confirmed that the transaction forms part of a strategy to make its Ethereum holdings more productive. The company first signaled this intent in October, stating that it planned to allocate up to $200 million to on-chain yield strategies.
“This deal allowed SharpLink to generate additional yield, in excess of its current staking rewards, while pushing the industry to embrace institutional-grade DeFi,” said Matt Sheffield, Chief Investment Officer at SharpLink, in an interview.
The initiative combines native Ethereum staking yields, restaking rewards from EigenCloud, and direct incentives from Linea and ether.fi. Anchorage Digital keeps all assets in qualified custody, which makes sure that they follow all rules and regulations. SharpLink said that this multi-layer yield strategy improves the return profile without putting security at risk.
Industry firsts in institutional DeFi deployment
SharpLink’s approach introduces multiple firsts for a public company interacting with DeFi protocols.
“A public company deploying into liquid staking and then bridging, all without leaving a qualified custodian,” Sheffield said. “This was multiple industry firsts, and it is a milestone on our journey to make our treasury the most productive exposure to ETH.”
The company’s program relies on a combination of staking and restaking systems designed for large-scale institutional participation. Unlike traditional DeFi users, who often manage funds through self-custody wallets, SharpLink uses an institutional-grade framework that satisfies public company compliance obligations. Sheffield said the firm will “do many more deals of this nature, accretive to our stockholders, as we earn the excess DeFi yields.”
Stockholders seem to have cautiously welcomed the move. Shares of SharpLink (SBET) closed at $10.28 on Thursday, up about 1.4% for the day. However, the stock remains down more than 33% since the company first unveiled its staking roadmap in October.
Linea’s ties to Consensys and Ethereum
Linea is a Layer-2 zero-knowledge Ethereum Virtual Machine (zkEVM) that processes transactions off the Ethereum mainnet to improve speed and reduce costs. It is part of the Consensys ecosystem, founded by Joseph Lubin, who also co-founded Ethereum. Lubin is the chairman of SharpLink, which connects the company closely to Ethereum's main network.
SharpLink is also a member of the Linea Consortium, which helps manage the network’s governance and token distribution. Linea launched its native token in September 2025, after which total value locked (TVL) on the network peaked at about $1.64 billion before falling roughly 89% to around $185.74 million, according to DefiLlama. Despite the decline, Linea remains a key Layer-2 platform for enterprise-grade blockchain operations.
According to Sheffield, the Linea deployment is not a one-time event. He described the move as “a new on-chain paradigm for capital markets” and emphasized SharpLink’s focus on building repeatable institutional DeFi models.
“SharpLink is creating a new on-chain paradigm for capital markets,” he said. “Our belief is that Ethereum will be the bedrock of global finance, and this is a big step toward modeling DeFi for institutions at scale on a risk-adjusted basis.”
Aligning with Ethereum’s long-term vision
SharpLink CEO Joseph Chalom reaffirmed earlier that the firm’s strategy supports “Ethereum-aligned products” because the company’s long-term thesis rests on Ethereum becoming more integrated into global finance. Chalom stated that expanding the use of Ethereum-based infrastructure aligns with how public companies can operate more efficiently in a digitized economy.
Ethereum remains central to SharpLink’s corporate structure. The company’s treasury of 864,840 ETH is fully staked and managed under professional custody to generate yield while maintaining liquidity and security. The program represents one of the most significant attempts to apply DeFi techniques to an enterprise-level asset management strategy.
Although Ethereum’s market value has dipped to about $3,115, roughly 37% below its all-time high of $4,946, SharpLink executives remain confident. The firm continues to position itself as a pioneering example of how traditional corporations can safely participate in digital asset economics while meeting transparency and fiduciary requirements.
Risk disclosure
DeFi participation carries multiple layers of risk.
Readers should recognize that decentralized finance platforms rely on experimental smart contracts, which may fail or become vulnerable to cyberattacks or programming errors. These contracts can malfunction and result in the partial or total loss of user funds.
Smart contract risks: All staking and restaking programs depend on code execution, not intermediaries. Code vulnerabilities can be exploited or disrupted, leading to unanticipated outcomes.
Counterparty and custody risks: Institutional custody partners such as Anchorage Digital operate under regulatory frameworks but remain subject to third-party performance and solvency risks. Users and investors could face delays or losses if custodial or counterparty partners experience technical problems or compliance issues.
Regulatory uncertainty: DeFi regulations vary by jurisdiction and remain largely undefined for institutional participants. Any changes in legal interpretations or enforcement could affect project operations or asset recoverability.
Market volatility: Digital assets such as Ethereum are highly volatile. Prices can experience sudden, substantial fluctuations relative to fiat currencies or other digital assets.
Roman Zaika
Editorial Disclosure: This publication and its parent entity maintain no financial relationships, equity stakes, sponsorships, or paid partnerships with SharpLink Gaming, Consensys, Linea, or any related corporate entities. The information provided here is for news and informational purposes only and is based on publicly available materials and verified company statements. The publisher holds no digital assets disclosed in this article.
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