Galaxy Digital Inc. (NASDAQ:GLXY) and Sharplink Inc. (NASDAQ:SBET) today announced their entry into a non-binding memorandum of understanding, subject to definitive documentation, regarding the formation of the Galaxy Sharplink Onchain Yield Fund, LP, (the "Fund"), a private investment vehicle that will deploy capital across decentralized finance liquidity protocols and other onchain yield-generating strategies. Galaxy will serve as investment manager.

The Fund, planned to launch in the coming weeks, will receive commitments totaling $125 million, consisting of $100 million from Sharplink's staked Ethereum treasury and $25 million from Galaxy.

The Fund will pursue a strategy designed to capture high-yielding opportunities in blockchain-based financial markets by allocating to promising applications. The structure is built to allow Sharplink to preserve its core Ethereum exposure while putting balance-sheet capital to productive use — extending the role of digital asset treasuries beyond passive holding and into actively managed onchain strategies.

Protocol selection, exposure sizing, and ongoing monitoring are governed by Galaxy's institutional research and risk management framework — the same discipline applied across the firm's lending, trading, and asset management businesses, and a defining feature of how Galaxy has operated onchain across multiple market cycles. Galaxy has been actively deploying hundreds of millions of dollars of capital onchain since 2020 and is among the largest publicly traded companies actively allocating to onchain strategies today.

"Institutional capital is moving onchain, and the infrastructure to support it has matured to a point where allocators can access yield, liquidity, and risk management with the same rigor they expect in traditional markets," said Mike Novogratz, Founder and CEO of Galaxy. "Sharplink has built one of the most significant Ethereum treasuries among public companies, and we're proud to partner with them to put that capital to work in a strategy designed to compound their core position."

Sharplink CEO Joseph Chalom said, "Sharplink's strategy has always been to make our ETH maximally productive while upholding the highest standard of risk management. This fund is the clearest expression of that conviction. By partnering with Galaxy to deploy a portion of our staked Ethereum treasury into institutional onchain yield strategies, we aim to compound our treasury while contributing to the deepening of the onchain financial ecosystem. Galaxy's institutional infrastructure and Sharplink's treasury scale are a natural fit. This partnership will prove to be a direct demonstration of what it looks like when public company capital meets onchain finance with discipline and institutional standards."

"The structure of this fund reflects Sharplink's ideal framework for active capital allocation," added Matthew Sheffield, Sharplink's Chief Investment Officer. "We aim to preserve our core staked Ethereum exposure while generating excess returns that accrues back to our shareholders. Galaxy's research, investment diligence and risk management infrastructure demonstrated a rigorous commitment to the institutional standards Sharplink embodies. This marks an extension of our treasury strategy into more active strategies, aimed at providing sustainable term structures to great projects. Generating yield while aiming to be a positive force in the ecosystem continues to be our goal."