SharpLink Gaming, a Nasdaq-listed company and one of the largest public holders of Ethereum, announced Tuesday that it will deploy $200 million in ETH on the Linea network, a Layer 2 blockchain built by Consensys.
The company said the allocation will be made gradually over several years under a risk management framework. The strategy aims to generate consistent revenue from Ethereum’s staking, rolling, and decentralized financing (DeFi) activities, while maintaining institutional-level security controls.
Structured Ethereum Implementation
SharpLink said the funds will be used across multiple performance sources:
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Ethereum Staking Rewardsobtained by validating network transactions.
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Resuming returnsusing the EigenCloud verification network.
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Line-Based DeFi Incentivescompatible with Ether.fi and other protocols.
The company stated that Anchorage Digital Bank, a federally regulated custodian, will safeguard all ETH used in the program.
“We manage our treasury with the same standards expected of any public company,” he said. joseph chalomCo-CEO of SharpLink. “This strategy allows us to use the Ethereum 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 implementation and develop new tools for institutional use of digital assets.
The collaboration aims to test how large, regulated entities can securely earn on-chain returns without relying on unverified third-party services.
Both companies are also studying ways to support tokenized financial products and automated liquidity systems within the Linea network, which could allow corporations to move and manage assets more efficiently on Ethereum.
Company’s Ethereum Position
SharpLink holds approximately 860,000 ETH, valued at around $3.56 billion, making it one of the largest publicly traded Ethereum holders.
The company joined the Linea Consortium earlier this year, a group of companies helping with the development and adoption of Linea after the launch 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.
Market and stock response
Shares of SharpLink (NASDAQ:SBET) rose to $14.34 following the announcement, reflecting moderate investor interest in the company’s DeFi strategy.
Ethereum (ETH) also gained ground, rising about 8% over the past week to trade around $4,169. The move follows broader buying in major crypto assets after earlier declines in October.
Traders on prediction markets like Myriad currently assign a roughly 79% chance of ETH reaching $4,500 before falling below $3,100, suggesting cautiously bullish sentiment rather than widespread market euphoria.
SharpLink Ethereum Implementation and Its Purpose
SharpLink plans to use the Linea network to generate returns on part of its Ethereum holdings while maintaining full custody through Anchorage Digital Bank.
The program combines staking and replay 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 About Blockchain Validators