SharpLink launches a $200 million Ether on-chain deployment plan, combining staking, re-staking, and collaborative rewards.

The publicly listed company SharpLink Gaming in the United States has announced the launch of a $200 million Ether ETH deployment plan, which will be carried out on ConsenSys's zkEVM Layer 2 platform Linea. This multi-year plan integrates the staking mechanism of ether.fi, the re-staking rewards from EigenCloud (AVS), and a partner rewards mechanism, and is managed by the qualified custodian Anchorage Digital to ensure institutional-level asset security and compliance.

SharpLink stated that the project aims to convert its large Ether reserves into “efficient on-chain capital”, pursuing “risk-adjusted returns far exceeding the native staking rates of ETH” while maintaining regulatory transparency and control.

Combine the ether.fi and Linea incentive mechanisms

Mike Silagadze, CEO of ether.fi, pointed out in an interview with Blockworks that the $200 million from SharpLink is just the starting point, with the goal of scaling up. He explained that staking is still taking place on the Ethereum mainnet, after which the receipt tokens will be bridged to Linea to participate in diverse DeFi activities. Silagadze added that the re-staking happens in the background, and the actual location where the tokens are stored does not affect the rewards process. He also mentioned that ether.fi has been operating on Linea for over a year. According to sources, Anchorage is integrating with ether.fi, allowing institutional clients like SharpLink to mint and allocate tokens directly from custody accounts in the future, improving operational efficiency and compliance transparency. A SharpLink spokesperson emphasized that the company manages all governance matters with the rigor and transparency expected of a NASDAQ-listed company. Regarding the relationship with ConsenSys founder and SharpLink chairman Joseph Lubin, the company stressed that the processes comply with public company standards.

ETHZilla sells ETH, sparking comparisons

On the day SharpLink announced, the market's focus also turned to another digital asset management company, ETHZilla. The company, under pressure from investors in a public letter, sold approximately $40 million worth of ETH to repurchase shares trading below their net asset value (NAV). Silagadze stated that ETHZilla's action is a “market signal” rather than an exit from DeFi, and ether.fi did not receive any withdrawals as a result. This also highlights the divergence of two strategies in the current digital asset management (DAT) field: one is selling ETH to bridge market discounts; the other is maintaining on-chain yields through staking and restaking. SharpLink has clearly chosen the latter and is focusing on Linea, an L2 platform that is gradually gaining favor among institutions.

Risk management and AVS mechanism

In terms of risk, SharpLink's strategy covers L2 bridging risks, sequencer assumptions, smart contract security, and the participation penalties of EigenCloud AVS. Silagadze stated that, like the previous collaboration with ETHZilla, the selection and risk management of AVS are fully under the responsibility of ether.fi. A spokesperson for SharpLink further explained that AVS terms will be pre-reviewed, and clear risk mitigation trigger mechanisms will be established to ensure investment security.

mNAV Indicator and Market Observation

Regarding the evaluation of mNAV (modified net asset value) that investors are concerned about, Blockworks Research analyst Dan Smith pointed out that there are currently at least four tracking methods, and “the best measurement depends on the company structure.” He cited the example of ETHZilla choosing to sell ETH when the unpaid mNAV is below 1 but the fully diluted mNAV is above 1, indicating its focus on controlling market discounts; in contrast, BitMine Immersion (BTMR) still issues shares when the unpaid mNAV is below 1, representing a different basis for its evaluation.

New Trends in On-chain Asset Management

SharpLink's strategy represents a new direction in digital asset management; using an institutional-grade risk control framework, it applies ETH for on-chain staking and re-staking for productive purposes, combined with token rewards to enhance overall returns. Whether it will become the “standard practice” for a public ETH treasury in the future will depend on whether the board and investors place more importance on narrowing the current market discount or maximizing long-term on-chain returns and Ether value.

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