Key Takeaways
Investment bank TD Cowen reiterated its $16 price target for Sharplink (NASDAQ:SBET), projecting a 106 percent upside based on the company’s new partnership with Galaxy Digital and broadening demand for its Ethereum-based treasury strategy.
“Our strategy is simple: accumulate ETH accretively, make it productive, and scale that advantage over time,” Sharplink Chief Executive Officer Joseph Chalom said on the company’s recent earnings call, framing the business as an “institutional-grade ETH treasury platform.”
The bullish analyst view is supported by the formation of the Galaxy SharpLink Onchain Yield Fund, a new venture expected to deploy roughly $125 million into decentralized finance (DeFi) protocols. Sharplink is contributing approximately $100 million to the fund, which Galaxy Digital will manage. The move represents a strategic shift to generate returns above the standard Ethereum staking rate.
The partnership allows Sharplink to put a portion of its significant Ethereum holdings to work in higher-yield strategies while retaining its core exposure to ETH. The fund marks a key step in management’s plan to compound ETH per share, supplementing its primary strategy of staking nearly all of its treasury.
For the first quarter, Sharplink reported revenue of $12.1 million, a significant increase from $0.7 million in the prior-year period, driven by its ETH staking activities. However, the company posted a net loss of $685.6 million, which management attributed to non-economic factors under U.S. GAAP accounting. The loss included a $506.7 million unrealized loss from ETH market conditions and a $191.7 million impairment charge.
As of May 4, 2026, the company’s total holdings stood at 872,984 ETH, combining native ETH, liquid staked ETH (LSETH), and wrapped Ether (WEETH). The new yield fund with Galaxy will utilize a small fraction of these holdings, equal to about 43,000 ETH.
The reiterated price target suggests TD Cowen sees the market undervaluing Sharplink's active treasury management and its potential to generate alpha. The move into managed on-chain strategies with a partner like Galaxy Digital could provide a new catalyst for the stock as it seeks to close the gap between its share price and its net asset value.
This article is for informational purposes only and does not constitute investment advice.
