The allocation involves converting existing ETH into wstETH, an ERC-20 token that tracks the value of staked assets without the complexities of rebasing. By utilizing Anchorage Digital—an OCC-chartered national trust bank—SharpLink secures a regulated custody layer for these digital assets. This move follows the company’s previous commitments to various restaking programs and on-chain yield funds, as staking has become the primary revenue driver for the firm, accounting for $11.2 million of its $11.5 million in second-quarter revenue.
In section Cryptocurrency
SharpLink Directs $200M of ETH Into Lido Staking
Nasdaq-listed SharpLink is deploying $200 million of its corporate Ether treasury into Lido’s liquid staking protocol. The company plans to hold the resulting wstETH tokens under the custody of Anchorage Digital, marking a significant expansion of its existing strategy to extract yield from its massive Ethereum holdings.
Despite the push for yield, the strategy carries significant financial and regulatory exposure. SharpLink recently reported a $394.3 million net loss for the second quarter, largely driven by $76.1 million in impairments related to its existing liquid staking positions. While CEO Joseph Chalom maintains that the Lido integration will improve capital productivity, the company faces inherent risks including market volatility, slashing, and evolving SEC guidance regarding liquid staking models. SharpLink has yet to provide a specific timeline for the transaction or detail how the new wstETH holdings will be classified in its financial reporting.
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