New paradigm in crypto stocks! SharpLink accumulates $2.75 billion in ETH staking for interest

SharpLink Gaming has accumulated 865,000 ETH (worth $2.75 billion), making it the world’s largest Ethereum treasury. Last week, Linea staked $170 million, and a former BlackRock executive stated that productivity will be enhanced by 2026, utilizing permanent capital as DeFi lenders. The stock price has fallen 51%, but its resilient architecture can withstand cycles; ETH price increases benefit the stock, and declines present good buying opportunities.

From BlackRock to the Crypto Stock Strategist

Publicly traded Ethereum treasury company SharpLink Gaming increased its holdings of Ethereum assets worth billions of dollars last year, aiming to “lead” the effective utilization of digital asset treasuries for Ethereum by 2026. Since implementing its fund management strategy in May last year, the company has accumulated over 865,000 ETH (valued at approximately $2.75 billion as of Tuesday). SharpLink CEO Joseph Chalom said on Decrypt’s sister show Rug Radio’s FOMO Hour on Tuesday: “2025 is the year for initial accumulation of DAT, and 2026 must be the year to boost productivity.”

Chalom joined SharpLink in July, having previously led BlackRock’s digital asset strategy. This background is highly valuable: BlackRock is the world’s largest asset manager, managing over $10 trillion, with its digital asset division responsible for Bitcoin ETFs like BlackRock IBIT and strategic planning for BUIDL tokenized funds. Chalom’s move from BlackRock to SharpLink indicates his confidence in the long-term potential of the crypto stock model.

“We want to be pioneers,” he added. “What do I mean by pioneering in Ethereum productivity? It’s proven that in the crypto space, few have long-term capital. Currently, we have nearly $3 billion in ‘permanent capital.’ We have the capacity to do some unprecedented things.” The concept of “permanent capital” is a core advantage of the crypto stock model: unlike hedge funds, listed companies are not pressured by quarterly redemptions and can adopt longer-term investment strategies.

In other words, the company’s years of investment in staking and its long-term strategic vision provide opportunities that short-term-focused institutions or investors cannot match. SharpLink aims to go further in the future, not just holding ETH but actively leveraging these assets to generate returns.

Linea Staking and DeFi Lending as Dual Engines

Last week, the company launched its plan to deploy $170 million worth of ETH on the Layer 2 network Linea to boost incentives and staking rewards. Although currently only $170 million is staked on Linea, nearly all of its assets are staked through other protocols to earn yields. Chalom said SharpLink will continue to uphold the principles of financial flexibility and selective operation, adding that some of the company’s ETH “will remain in native staking, some will be restaked, and some will be used for liquidity re-staking tokens. I believe we will retain part of the portfolio to seize opportunities.”

SharpLink’s Three Strategic Pillars for 2026

Native Staking: Earn basic staking rewards via Ethereum PoS mechanism, approximately 3-4% annualized

Restaking and Liquidity Staking: Obtain additional yields through protocols like EigenLayer, up to 5-8% annualized

DeFi Lending: Act as a lender providing liquidity to other protocols, with potential double-digit returns

This means SharpLink could soon play the role of a lender, financing other DeFi protocols that need capital or liquidity. Chalom said, “I think you’ll see us continually push the limits of what ‘permanent capital’ can achieve.” This forward-looking DeFi banking positioning is highly innovative. While other listed companies are still simply holding crypto assets, SharpLink is already thinking about how to actively generate income from these assets.

From a risk management perspective, a diversified staking strategy is wise. Putting all ETH into a single protocol risks smart contract failure or protocol collapse, but spreading across native staking, restaking, and DeFi lending channels can generate yields while reducing concentration risk. Chalom emphasized “retaining part of the portfolio to seize opportunities,” indicating that SharpLink is not mechanically locking all assets but maintaining flexibility to adapt to market changes.

Long-term Focus Despite Stock Price Halving

Chalom said that the staking yields from ETH allow him and SharpLink to withstand crypto volatility. “Our architecture means that when Ethereum’s price rises, our stock price benefits. When ETH’s price falls, there’s no reason for us to sell,” he explained. “And when ETH’s price drops, that’s actually a good buying opportunity. Our architecture can handle these two price cycles.”

The company’s (SBET) stock rose 2.7% on Tuesday to $10.53, but has fallen about 51% over the past six months. This divergence between stock price and holdings value is common among crypto stocks. ETH has increased 3% in the past 24 hours, currently trading at $3,206. Theoretically, SharpLink’s holdings of 865,000 ETH, valued at $2.75 billion, are worth far more than the stock’s market cap based on the $10.53 share price, indicating a significant market discount.

This discount reflects investor skepticism toward the crypto stock model but also creates potential arbitrage opportunities. If SharpLink can demonstrate the productivity advantage of its “permanent capital” by 2026—showing that staking and lending can generate excess returns—the market may reevaluate its valuation, and the gap between stock price and NAV could narrow.