SharpLink to Deploy $200M in Ethereum on Linea Network

SharpLink Gaming, a Nasdaq-listed firm and one of the largest public holders of Ethereum, announced on Tuesday that it will deploy $200 million in ETH to the Linea network, a layer-2 blockchain built by Consensys.

The company said the allocation will take place gradually over several years under a risk-managed framework. The strategy aims to generate consistent income from Ethereum staking, restaking, and decentralized finance (DeFi) activities while maintaining institutional-level security controls.

Structured Ethereum Deployment

SharpLink said the funds will be deployed through multiple yield sources:

• Ethereum staking rewards, earned by validating network transactions.

• Restaking returns, using EigenCloud’s verification network.

• Linea-based DeFi incentives, supported by Ether.fi and other protocols.

The company stated that Anchorage Digital Bank, a federally regulated custodian, will secure all ETH used in the program.

“We manage our treasury with the same standards expected from any public company,” said Joseph Chalom, SharpLink’s Co-CEO. “This strategy lets us use Ethereum’s ecosystem productively without compromising institutional controls.”

Partnership with Consensys and Linea

SharpLink said it is working directly with Consensys, the company behind Linea, to manage the deployment and develop new tools for institutional use of digital assets.
The collaboration aims to test how large, regulated entities can safely earn on-chain yields without relying on unverified third-party services.

Both firms are also studying ways to support tokenized financial products and automated liquidity systems within the Linea network, potentially allowing corporations to move and manage assets more efficiently on Ethereum.

Company’s Ethereum Position

SharpLink holds roughly 860,000 ETH, valued at around $3.56 billion, making it one of the largest publicly traded Ethereum holders.
The firm joined the Linea Consortium earlier this year — a group of companies assisting with Linea’s development and adoption after the release of its native LINEA token.

Chalom said SharpLink had been preparing to use Linea before the token’s launch, describing it as a “logical next step” for an Ethereum-focused treasury.

Stock and Market Response

SharpLink’s stock (NASDAQ: SBET) edged up to $14.34 after the announcement, reflecting moderate investor interest in the firm’s DeFi strategy.
Ethereum (ETH) also gained ground, climbing about 8% over the past week to trade around $4,169. The move follows broader buying across major crypto assets after earlier declines in October.

Traders on prediction markets such as Myriad currently assign roughly a 79% probability that ETH will reach $4,500 before falling below $3,100, suggesting a cautiously bullish sentiment rather than broad market euphoria.

SharpLink’s Ethereum Deployment and Its Purpose

SharpLink plans to use the Linea network to generate returns on part of its Ethereum holdings while keeping full custody through Anchorage Digital Bank.
The program combines staking and restaking rewards with DeFi incentives offered by Linea and Ether.fi.
Company executives said the initiative is part of a broader effort to use blockchain infrastructure for treasury income, not speculative trading, while keeping all activity under regulated oversight.

Also Read: Ethereum Co-Founder Vitalik Buterin Issues Rare Warning on Blockchain Validators