Sharplink Chairman Joe Lubin and CEO Joseph Chalom announced a strategic shift towards DATs and redirecting their treasury to generate returns in Ethereum.
At Consensus Hong Kong 2026, Joseph Lubin and Chalom outlined an explicitly long-term strategy: allocating capital to Ether-denominated digital asset treasuries (DATs) and actively managing staking and liquid staking positions to generate returns.
SharpLink Gaming has placed almost all of its 198,167 ETH in staking protocols and enjoys a base yield of around 3% on Ethereum, which helps mitigate price pressure. In that recent period, the company reportedly generated 102 ETH in rewards.
Beyond traditional staking, management proposed deepening the strategy through decentralized finance. Lubin mentioned plans to deploy up to $200 million on Linea, a network linked to Consensys, using liquid staking protocols such as ether.fi and EigenCloud. The goal, they stated, is to evolve from mere speculative exposure to an actively managed, income-oriented treasury.
The company has also linked this policy to its core business. In an article published by web-hh on February 12, 2026, SharpLink argued that its focus on traffic arbitrage and blockchain gaming justifies maintaining ETH as a strategic reserve asset.
SharpLink’s strategic changes amid a down market
Management maintains that macroeconomic volatility has overshadowed Ethereum’s structural momentum and utility. From this perspective, converting cash-like reserves into productive ETH positions would improve risk-adjusted returns while maintaining consistency with the company’s technology roadmap.
However, the strategy involves a high degree of concentration: the treasury is primarily exposed to Ether and liquid staking protocols, rather than diversified instruments or more traditional vehicles like ETFs. While staking provides a base yield and has already generated 102 ETH in rewards in a recent period, the reliance on DeFi infrastructure introduces additional risks.
These risks include smart contract vulnerability, the potential vulnerability of third-party protocols, and exposure to liquidity events during stress scenarios. Furthermore, the planned $200 million deployment in Linea will expand this active exposure, reinforcing the company’s performance-oriented treasury profile but also increasing its sensitivity to technical failures or ecosystem disruptions.
Looking ahead, the execution of this plan will be the true test. Investors and counterparties will assess whether the performance optimization can offset potential price declines and how the company will manage liquidity during periods of volatility.
