SharpLink to stake $200 million in Ethereum through Lido

SharpLink Gaming (SBET) announced plans to stake $200 million in Ethereum (ETH) through Lido as part of its strategy to generate returns from its ETH treasury, according to a Thursday announcement.

SharpLink expands Ethereum staking strategy

The allocation will be converted into wrapped staked ETH (wstETH), which represents staked Ethereum and the associated staking rewards. SharpLink stated that the wstETH will be held in custody with Anchorage Digital.

The move adds Lido to SharpLink's existing staking and restaking strategy as the company looks to increase the productivity of its Ethereum holdings.

Lido is the largest liquid staking protocol on Ethereum, with roughly $16.5 billion in ETH staked on the platform, according to the company. Its wstETH token is integrated across more than 100 protocols and has around $10 billion in active use as collateral.

Unlike directly staked ETH, wstETH can be deployed across Ethereum-based DeFi applications while the underlying ETH continues to earn staking rewards. This gives SharpLink exposure to staking returns while retaining flexibility over how its treasury assets are used.

“This is an exciting expansion in making our ETH even more productive, leveraging wstETH’s composability while maintaining institutional-grade risk standards,” SharpLink CEO Joseph Chalom said.

Lido Labs Foundation Executive Director Vasiliy Shapovalov said SharpLink's decision reflects growing institutional use of Ethereum staking and DeFi applications.

“I'm excited to see Sharplink increasing the use of Ethereum native staking protocols and the DeFi ecosystem. Being bullish ETH is being bullish on major Ethereum-based applications,” Shapovalov said.

The Lido allocation broadens the range of Ethereum-native protocols used in that strategy.

The transaction also comes as institutional investors increasingly explore ways to earn yield on crypto assets without fully giving up liquidity. Through wstETH, SharpLink will be able to deploy its staked ETH across supported DeFi protocols while maintaining exposure to Ethereum staking rewards.

Kean Gilbert, head of institutional relations at Lido Institutional, said institutions are increasingly looking for ways to put their ETH to work while retaining flexibility in how the assets are deployed.

“Treasuries want their ETH working for them without losing liquidity, and Lido has become the standard for doing it at scale. With wstETH, a holder of Sharplink’s size can stake while keeping the flexibility its deployment strategy demands,” Gilbert said.

SharpLink did not disclose the exact timing of the $200 million allocation or provide details on the expected staking yield. The company noted that the move is part of its broader effort to make its Ethereum treasury more productive for shareholders.