SharpLink moved 5,442 ETH to Galaxy Digital’s OTC wallet, a transaction valued at approximately $17.02 million that comes as the treasury records nearly $479 million in unrealized losses. The move underscores a tactical rethinking of its exposure to ETH, and according to data collected by specialized media, the maneuver combines market risk management and preparation for a possible monetization of assets.
SharpLink maintains a massive position in Ethereum, with between 859.853 and 861.000 ETH acquired at an average cost of $3.609 per ETH, which equates to about 0,712% of the total supply and places the company as the second-largest institutional holder after Bitmine, according to reports from specialized media. The transfer to Galaxy Digital was channeled via OTC, a method that allows executing large volumes of cryptocurrency outside the public market to reduce price impact, aligning with a strategy that balances long-term exposure with tools to manage liquidity and market risk.
In parallel with the transfer, SharpLink has indicated a capital deployment strategy aimed at generating yield on its reserves: it plans to allocate $200 million to the Linea solution from ConsenSys, in collaboration with custody and restaking service projects such as ether.fi and EigenCloud. The firm also reported obtaining 336 ETH in staking rewards in a single week, accumulating 7.403 ETH in total rewards and with almost all of its holdings actively staked, according to the same sources.
Financial impact and market perception
The bet on ETH has had heterogeneous effects on financial statements and market valuation. For the third quarter of 2025, SharpLink reported $10,8 million in revenue and $104,3 million in net income, figures largely attributed to its management of Ethereum reserves. The company also initiated a $1.500 billion share buyback program, a measure that reflects management’s confidence in its strategy, according to reports.
Despite these actions, the market has penalized the NASDAQ: SBET stock, which has accumulated a drop of over 86% since the start of the strategy to trade around $10,55 and trades at a discount of approximately 19% to its net asset value, according to reports.
The combination of large positions, yield-seeking bets and OTC operations poses a tension between long-term conviction and the need for liquidity or market risk management; selling publicly could amplify losses due to price impact, while maintaining exposure prolongs the risk of unrealized losses.
The transfer of 5,442 ETH to Galaxy Digital is a notable episode within a high-risk, high-concentration institutional strategy in ETH, and the next milestone to watch is the deployment of the $200 million in Linea and the evolution of staking rewards, which will indicate whether the combination of yield generation and OTC operations mitigates unrealized losses or accelerates a treasury restructuring.
