SharpLink Gaming Deploys $170M Ethereum on Linea as ETH Staking Nears $200M

As a publicly listed Ethereum (ETH) treasury firm, SharpLink Gaming entered into $170 million worth of ETH on the Linea (a new 2nd Layer scaling blockchain network). SharpLink Gaming made a bold statement that was well thought through.

SharpLink made it clear about its future plans for Ethereum staking last year. It was announced that they would stake up to $200 million of their ETH holdings over the next few years to allow their company to earn better return on investment than what they could earn today.

As of today, nearly all of the $200 million is now earning a yield from staking ETH. SharpLink’s intention in staking is to provide institutions with productive use of ETH, while staying within the confines of traditional risk management strategies.

The partnership with Linea Network does more than generate yield for SharpLink Gaming, it advances the entire ETH market.

Also Read: Ethereum Trading Range Tightens Between $2,950–$3,400 Ahead of Bold Rally

Ethereum and Institutional-Grade DeFi Take Shape

As the evolution of Decentralised Financial Services moved away from being too complex, risky and informal, SharpLink is working to meet that challenge by staking Ether and disseminating to Linea while keeping the assets in an appropriate discretion custodial environment.

Producing results like this allows SharpLink to create returns above and beyond any staking returns produced through standard Ether staking which also produces a yield from both Eigen Cloud and EtherFi. It includes Linea as well through their programme (re-staking). This ultimately contributes to the layering of benefits into the customer’s portfolio without any indication of what an incentive this combination will provide for the customer.

SharpLink’s share price had a short-lived uptick of 1.4% on the day of their announcement. Although it has fallen over the last six months, both treasury strategies and investment strategies are constructed for long-term consideration and not necessarily for “headlines”.

Ethereum Alignment Drives Long-Term Treasury Strategy

SharpLink is the proud owner of 864,840 ETH, worth nearly $2.7 billion. It is the second-largest ETH-based company publicly traded on any stock market. The company stakes every single ETH they hold. Every action taken by SharpLink has a direct correlation with ETH being successful.

This alignment isn’t a coincidence. SharpLink’s leadership believes there needs to be real economic activity generated from ETH-based applications. Linea represents that vision as well. SharpLink’s involvement in the Linea Consortium manages the distribution of tokens.

There is a history of these entities coming together. Linea was created through Consensys, who was founded by Joseph Lubin, who helped to create Ethereum. The network effects associated with Ethereum aren’t limited to technology, they actually exist on a personal level as well.

SharpLink intends to pursue partnerships such as these going forward. More yield, more exposure, and to create pressure for others to become involved in Ethereum as well. Once again, Ethereum is the base layer on which institutions are building their businesses under the radar.

Also Read: Ethereum Price Drops Below $3,100 Testing Critical Support Levels