Ethereum News Today: SharpLink Stakes ETH on Linea Amid $3.7B Crypto Bet

SharpLink Gaming Inc. (NASDAQ: SBET) announced plans to stake a portion of its Ethereum (ETH) holdings on the Linea mainnet, further diversifying its treasury strategy amid ongoing volatility in the crypto market. The company currently holds 797,704 ETH, valued at approximately $3.7 billion as of August 26, 2025 [1]. Nearly 100% of these ETH holdings are already being staked to generate yield for shareholders, and the move to allocate part of the treasury to the Linea network aligns with the company’s broader goal of compounding ETH exposure while enhancing capital efficiency [1].

This strategy follows a recent week that saw SharpLink raise $360.9 million through its ATM facility, bringing the company closer to its target of acquiring more ETH before deploying it to generate yield [1]. The company also reported that total staking rewards had risen to 1,799 ETH since the launch of its treasury strategy on June 2, 2025, and that approximately $200 million in cash remained available for further ETH purchases [1]. The ETH concentration on a cash-converted basis has exceeded 4.00, a figure that has more than doubled since the inception of the strategy.

The decision to stake ETH on Linea, an Ethereum Layer 2 network backed by Consensys and other Ethereum-native organizations, coincides with the platform's recent airdrop eligibility tool launch on September 10. The Linea ecosystem plans to distribute 9.36 billion LINEA tokens to 749,662 eligible addresses, with a focus on rewarding early adopters and liquidity providers. According to Linea’s product lead, Declan Fox, the project has implemented a sybil-resistant distribution system that prioritizes genuine users and builders, ensuring a fair allocation of tokens [4].

SharpLink’s decision to stake on Linea appears to reflect broader industry trends, as Ethereum’s staking ecosystem continues to expand. Recent data shows that the Ethereum PoS network’s exit queue has fallen to 789,000 coins, while the entry queue has risen to 936,000 coins, indicating sustained interest in staking [3]. Meanwhile, Hashdex's Chief Investment Officer has highlighted staking and tokenization as key drivers for Ethereum’s price potential, forecasting a possible breakthrough above $10,000 in the future [3].

Despite SharpLink’s growing ETH exposure and yield-generating initiatives, the company’s stock has experienced significant volatility. On Thursday, its shares fell 8.26% to close at $15.43, a decline attributed to the broader drop in Ethereum prices and the granting of restricted stock units to co-CEO Joseph Chalom [2]. Chalom, who joined the company in July, has extensive experience in digital finance, having previously launched the iShares Ethereum Trust (ETHA), a $10 billion Ethereum-based ETF [2]. While the stock has faced downward pressure, the firm also announced a $1.5 billion stock buyback program to support shareholder value [1].

As SharpLink navigates this new phase in its ETH-staking strategy, the company remains focused on its dual objectives: raising capital to buy ETH and deploying those assets to generate yield for shareholders. With Ethereum positioned as a foundational asset in the future of finance and Linea emerging as a key player in the Ethereum ecosystem, SharpLink’s strategic allocation may signal a broader trend in how public companies are integrating crypto assets into their balance sheets.

Source:

[1] SharpLink (SBET) (https://www.linkedin.com/company/sharplinkgaming)

[2] SharpLink (SBET) Falls 8% on Ethereum Decline (https://finance.yahoo.com/news/sharplink-sbet-falls-8-ethereum-185423398.html)

[3] SharpLink Gaming plans to stake part of its ETH on ... (https://www.chaincatcher.com/en/article/2203778)

[4] Linea airdrop checker goes live in latest step toward ... (https://www.theblock.co/post/369254/linea-airdrop-checker-goes-live)