The Ethereum MicroStrategy Holds Nearly 868,000 ETH
Sharplink (SBET), the Consensys-backed Ethereum treasury firm that rebranded from SharpLink Gaming, now holds 867,798 ETH valued at approximately $1.7 billion as of February 15, 2026. The figure includes 225,429 ETH redeemable from the liquid staking token LsETH and 55,137 ETH redeemable from ether.fi's wrapped WeETH, with the rest in native ETH.
The company stakes nearly 100% of its holdings and has generated 13,615 ETH in staking rewards in under a year, all of which accrue to stockholders, according to CEO Joseph Chalom. That yield amounts to roughly $26 million at current prices, a steady drip of income even as the underlying asset bleeds value.
$1.39 Billion in Paper Losses and a Stock Down 39%
The headline numbers mask a brutal reality. Ethereum has fallen more than 60% from its August 2025 peaks, and Sharplink is nursing an estimated $1.39 billion unrealized loss according to DropsTab data. SBET stock, which briefly surged above $33 during the initial pivot hype, now trades around $6.66, down 39% in the last month alone and nearly 90% below its May 2025 peak.
Chalom has framed the strategy as one of discipline rather than reckless accumulation: "We're not going to be the people who are prioritizing accumulation over everything." The company positions itself as the "focused, disciplined digital asset treasury," a calculated contrast to the more aggressive buying patterns of Bitcoin treasury firms like Strategy (formerly MicroStrategy).
The comparison is inevitable. Strategy's playbook of buying Bitcoin through convertible note offerings and holding through drawdowns created a template that dozens of companies now follow. Sharplink is running the same experiment with Ethereum, except ETH has underperformed BTC by a wide margin over the past year, making the bet significantly more painful.
How Sharplink Built an 867K ETH War Chest
Sharplink's pivot to Ethereum began with a $425 million PIPE (private investment in public equity) deal backed by Consensys, the Ethereum infrastructure firm founded by Joseph Lubin. Additional investors included Pantera Capital, Galaxy Digital, Electric Capital, ParaFi, and Arrington Capital, a roster that reads like a who's who of institutional Ethereum conviction.
The company's acquisitions accelerated through 2025. By July, it had overtaken the Ethereum Foundation itself as the largest corporate holder of ETH, according to CoinDesk data. By December, holdings reached 863,424 ETH (639,241 native + 224,183 LsETH-equivalent) before staking rewards pushed the total past 867,000.
Rather than simply holding ETH in cold storage, Sharplink deploys capital into DeFi infrastructure. The firm committed $200 million in ETH to Consensys' Linea, a move that both generates yield and supports the Ethereum L2 ecosystem. This productive treasury model, earning yield on held assets rather than just waiting for price appreciation, distinguishes Sharplink from Bitcoin treasuries that rely purely on BTC's price trajectory.
60 New Institutions Bought the Dip
Perhaps the most striking detail in Sharplink's latest disclosure is the institutional ownership figure. As of December 31, 2025, institutional investors comprise 46% of SBET's common stock. During Q4 alone, approximately 60 new institutional investors added positions, even as Ethereum's price continued to slide.
This creates a paradox: the company is sitting on one of the largest unrealized losses in crypto corporate history, yet institutions are buying more. The math behind the decision likely centers on Sharplink's staking yield. At current rates, the firm generates roughly 1.5-2% annualized returns in ETH terms from staking alone, a stream that compounds regardless of price direction. For institutions that believe Ethereum will recover, buying a vehicle that is already deep underwater but generating yield represents a leveraged bet on mean reversion.
The brand refresh completed in February 2026 underscores this institutional focus. Sharplink adopted the tagline "Ethereum with an Edge" and launched a dedicated ETH treasury dashboard. The company also hired Steven Ehrlich, formerly of Forbes and Unchained, as Head of Research and Communications, signaling an effort to translate the Ethereum thesis for traditional finance audiences.
What This Means for the Ethereum Ecosystem
Sharplink's strategy matters beyond its own balance sheet. When a publicly traded company stakes 867,798 ETH, that is nearly 0.7% of Ethereum's total supply locked into proof-of-stake validation. The staking ecosystem has already crossed 50% of total ETH supply in deposit contracts, and institutional players like Sharplink contribute meaningfully to that security budget.
The firm's use of ether.fi's WeETH and LsETH for liquid staking also funnels institutional capital into DeFi protocols that power retail products. Cards like the ether.fi Core and Luxe rely on the same staking infrastructure that Sharplink uses at massive scale. When institutional capital deepens liquidity in these protocols, it stabilizes the yield rates that everyday crypto card users depend on for rewards.
The risk cuts both ways. If Sharplink were ever forced to liquidate a significant portion of its 867K ETH position, whether due to margin calls, stock price pressure, or corporate restructuring, the selling pressure could ripple through the entire Ethereum market. A forced seller with 0.7% of supply is not a trivial counterparty risk for the network. This dynamic mirrors the concerns that surrounded Grayscale's GBTC discount before the Bitcoin ETF conversion: a large, concentrated holder whose incentives may not always align with the broader market.
For retail investors considering Ethereum exposure through their own strategies, whether via staking rewards on a card or a direct ETH position, Sharplink's trajectory is a case study in conviction versus reality. The staking yield provides a genuine cushion, but it has not come close to offsetting a 60% price decline.
FAQ
Who is Sharplink and why do they hold so much ETH? Sharplink (SBET) is a Nasdaq-listed company that pivoted from online gaming to become an Ethereum treasury firm in 2025. Backed by Consensys, Pantera Capital, and Galaxy Digital through a $425 million PIPE deal, the company now holds 867,798 ETH worth approximately $1.7 billion, making it one of the largest corporate Ethereum holders globally.
How much has Sharplink lost on its ETH position? Sharplink faces an estimated $1.39 billion in unrealized losses as of February 2026. Ethereum has dropped more than 60% from its August 2025 peaks. However, the company has generated 13,615 ETH (roughly $26 million at current prices) in staking rewards, partially offsetting the paper losses.
Why are institutions still buying SBET stock despite the losses? Institutional ownership grew to 46% as of December 31, 2025, with 60 new institutional investors adding positions in Q4 alone. The likely thesis: Sharplink's staking yield (1.5-2% annualized in ETH terms) provides income regardless of price direction, and buying at depressed levels represents a leveraged bet on Ethereum's recovery.
How does Sharplink compare to MicroStrategy (now Strategy)? Both companies are publicly traded vehicles for concentrated crypto exposure. Strategy holds Bitcoin and relies on price appreciation. Sharplink holds Ethereum and adds a productive yield layer through staking. The key difference: ETH has underperformed BTC significantly over the past year, making Sharplink's position more painful on a relative basis.
Overview
Sharplink's 867,798 ETH position, worth $1.7 billion at the time of writing, represents one of the boldest corporate bets in cryptocurrency history. The company earns staking yield on nearly every token it holds, has attracted 46% institutional ownership despite a $1.39 billion unrealized loss, and just completed a brand overhaul signaling long-term commitment. Whether this is disciplined conviction or a cautionary tale depends entirely on where Ethereum trades 12 months from now. The staking rewards buy time, but at 60% below peak prices, even 13,615 ETH in earned yield barely scratches the surface of the drawdown. For now, Sharplink is the purest public market proxy for Ethereum's future, for better or worse.
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