SharpLink Deploys $170 Million in ETH on Linea, Signaling Institutional Shift in DeFi

SharpLink Gaming (NASDAQ: SBET) has deployed $170 million worth of ETH on Linea, a Layer-2 Ethereum network, as part of its $200 million crypto treasury strategy. The move represents a shift in how publicly listed companies approach crypto treasury management, moving away from passive balance-sheet holdings toward active on-chain yield generation. The deployment is executed in partnership with custody and infrastructure firms including Anchorage Digital, ether.fi, and EigenCloud according to reports.

The deployment integrates yield generation and on-chain participation within a defined risk framework. By leveraging Ethereum staking and restaking mechanisms, SharpLink aims to optimize returns on its ETH holdings without compromising institutional standards for custody and compliance as stated. This approach signals a growing interest in DeFi strategies among institutional investors.

Linea, the Ethereum Layer-2 network, targets institutional-grade DeFi by combining Ethereum's security with lower costs and higher throughput. The deployment represents a significant step in institutional engagement with Ethereum at scale. Declan Fox, head of Linea, emphasized that the deployment demonstrates the network's ability to enable institutional participation in Ethereum.

Why Did This Happen?

SharpLink's decision aligns with a broader institutional push toward Ethereum-based yield opportunities. The company has amassed a total of 859,853 ETH, valued at $2.68 billion, and plans to optimize gains through staking and restaking. Joseph Chalom, CEO of SharpLink, described the deployment as the beginning of a new era for institutional DeFi.

The deployment also follows a leadership transition in December 2025, with Chalom focusing on ecosystem partnerships and staking operations. SharpLink's strategic pivot into crypto began in mid-2025 and has positioned it as the second-largest corporate holder of ETH.

How Did Markets React?

SharpLink's shares rose 1.38% on Thursday following the announcement, closing at $10.28. The stock has gained 12.6% over the past five days but remains down 39.7% over the past six months. The move also coincides with broader institutional interest in Ethereum, including Grayscale's first U.S. Ethereum ETF staking payout.

Market observers note that the deployment could influence other spot ETH ETF issuers in the U.S. and globally. With the expected passage of the Clarity Act in 2026, more Ethereum-based ETFs may offer staking rewards to remain competitive.

What Are Analysts Watching Next?

Analysts are watching how institutional-grade DeFi protocols evolve in 2026. Joseph Lubin, co-founder of Ethereum, has stated that 2026 is the year when massive TradFi liquidity will flow into Ethereum. This shift could accelerate Ethereum adoption and contribute to a bullish outlook.

The deployment also highlights the importance of Layer-2 networks in executing complex on-chain strategies. As institutional-grade protocols expand, Ethereum's adoption curve is expected to see a major step forward.

SharpLink's move is part of a broader trend in which institutional investors are redirecting capital into Ethereum-based opportunities. Bitmine, the largest ETH treasury company, has also been expanding its Ethereum staking operations. This trend suggests that institutional interest in Ethereum is likely to continue growing in 2026.