--- title: "Why Sharplink (SBET) Is Down 18.7% After Massive Q1 Loss and New Onchain Yield Fund" type: "News" locale: "en" url: "https://longbridge.com/en/news/286863146.md" description: "Sharplink Inc. reported a significant Q1 loss of $685.56 million despite revenue of $12.06 million. The company has partnered with Galaxy Digital to create a $125 million Onchain Yield Fund, aiming to leverage its Ethereum treasury. This move is intended to alleviate financial strain but raises execution risks. Investors have mixed opinions on Sharplink's valuation, reflecting uncertainty about its future amidst rapid losses." datetime: "2026-05-19T06:16:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286863146.md) - [en](https://longbridge.com/en/news/286863146.md) - [zh-HK](https://longbridge.com/zh-HK/news/286863146.md) --- # Why Sharplink (SBET) Is Down 18.7% After Massive Q1 Loss and New Onchain Yield Fund - In May 2026, Galaxy Digital Inc. and Sharplink Inc. entered a non-binding memorandum of understanding to form the Galaxy Sharplink Onchain Yield Fund, LP, committing US$100 million from Sharplink’s staked Ethereum treasury and US$25 million from Galaxy alongside Sharplink’s release of first-quarter 2026 results showing revenue of US$12.06 million and a very large increase in net loss to US$685.56 million year over year. - The planned fund highlights a pivot toward actively managed onchain yield strategies for Sharplink’s digital asset treasury, even as its recent quarterly performance underlines the financial strain of scaling its business model. - We’ll now examine how channeling US$100 million of Sharplink’s Ethereum treasury into an actively managed onchain yield fund shapes its investment narrative. Invest in the nuclear renaissance through our list of 88 elite nuclear energy infrastructure plays powering the global AI revolution. ## What Is Sharplink's Investment Narrative? For Sharplink, you really have to buy into two ideas: that its Ethereum-heavy balance sheet can be turned into a productive, institutionally managed asset base, and that the underlying operating business can eventually justify the current valuation despite deep losses. The new Galaxy Sharplink Onchain Yield Fund leans into the first part of that story, potentially making US$100 million of staked Ethereum work harder without giving up core exposure. In the near term, that could become a key catalyst if onchain yields offset some of the financial strain highlighted by the US$685.56 million quarterly net loss. At the same time, it complicates the risk picture, since execution now depends not only on Sharplink’s own business model but also on how effectively Galaxy runs an aggressive DeFi yield strategy with treasury capital. However, investors should be aware of how quickly treasury and cash runway could come under pressure. Our expertly prepared valuation report on Sharplink implies its share price may be too high. ## Exploring Other Perspectives SBET 1-Year Stock Price Chart Sixteen fair value estimates from the Simply Wall St Community span from cents to very large figures, showing just how far apart opinions sit. When you set that against Sharplink’s rapid losses and heavy reliance on balance-sheet Ethereum, it underlines why different investors may reach very different conclusions about the company’s future path. Explore 16 other fair value estimates on Sharplink - why the stock might be a potential multi-bagger! ## The Verdict Is Yours Don't just follow the ticker - dig into the data and build a conviction that's truly your own. - A great starting point for your Sharplink research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision. - Our free Sharplink research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sharplink's overall financial health at a glance. ## Interested In Other Possibilities? Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: - The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 15 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. - Uncover the next big thing with 29 elite penny stocks that balance risk and reward. - AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [SBET.US](https://longbridge.com/en/quote/SBET.US.md) - [ETHHKD.VAHK](https://longbridge.com/en/quote/ETHHKD.VAHK.md) - [ETHUSD.VAHK](https://longbridge.com/en/quote/ETHUSD.VAHK.md) - [GLXY.US](https://longbridge.com/en/quote/GLXY.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [BRPHF.US](https://longbridge.com/en/quote/BRPHF.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Sharplink Gaming (NASDAQ:SBET) Stock Price Down 9.2% Following Insider Selling](https://longbridge.com/en/news/286582597.md) - [Sharplink Lost $686 Million In Q1, But SBET Could Still Double Thanks To 'Favorable Setup'](https://longbridge.com/en/news/286130478.md) - [Lance Vitanza Initiates Buy on Sharplink, Citing Improved Risk/Reward, Galaxy Partnership, and Undervalued ETH-Focused Fundamentals](https://longbridge.com/en/news/286083377.md) - [Sharplink Q1 Loss Widens, Revenue Rises](https://longbridge.com/en/news/285916682.md) - [Galaxy Digital to manage Sharplink’s new $125 million onchain yield play](https://longbridge.com/en/news/286070958.md)