SharpLink Gaming made a bold move by shifting $170 million in Ethereum to Linea, a Layer-2 network designed to reduce transaction costs and accelerate processing speeds. The Minneapolis-based publicly traded company announced the deployment on Thursday, part of a broader strategy to optimize its massive ETH holdings. With 864,840 ETH (roughly $2.7 billion at current prices), SharpLink ranks as the second-largest publicly traded Ethereum holder.
The firm previously disclosed plans to invest up to $200 million more in Ethereum over the coming years. Chief Investment Officer Matt Sheffield noted, “This is the right moment for public companies to step into DeFi.” He explained that the initiative pairs Ethereum’s native staking yield with EigenLayer restaking rewards, plus direct incentives from Linea and EtherFi. “It’s the most productive way to hold ETH using institutional-grade infrastructure. That’s our edge,” he added.
Institutional Strategy: Staking, Restaking, and Incentives
SharpLink’s approach centers on maximizing returns while maintaining security and governance rights. All its ETH has been staked through Figure Ethereum Staking Rewards, with custody handled by Anchorage to ensure institutional-level protection. Sheffield indicated the company could negotiate similar deals if they serve shareholder interests. The ultimate goal: demonstrate how publicly traded firms can safely engage with DeFi at scale.
Despite the news, SharpLink’s stock edged up just 1.4% to $10.28 on Thursday. However, shares have fallen over 33% since the company published its staking roadmap in October, reflecting shifting investor sentiment.
Linea Struggles With 89% TVL Drop
Linea processes Ethereum transactions off-chain, cutting costs and boosting speed. The network gained traction after launching its token in September, but total value locked (TVL) has plunged from a peak of $1.64 billion to about $185.74 million — an 89% decline. Notably, SharpLink chairman Joseph Lubin co-founded Ethereum and leads Consensys, the incubator behind Linea. SharpLink also participates in the Linea Consortium, influencing governance and token distribution.
SharpLink’s strategy emphasizes long-term institutional DeFi adoption. Sheffield calls it a “new on-chain paradigm” for capital markets. By leveraging advanced staking, bridging, and custody solutions, the company aims to set a precedent for other public firms, positioning Ethereum as foundational infrastructure for future global finance.