Nasdaq-listed SharpLink Gaming (SBET) has announced a strategic shift in its Ethereum treasury management, revealing plans to stake a portion of its $3.6 billion ETH holdings on Consensys' Linea layer-2 network. The company's stock fell 4.86% during midday trading following the announcement, dropping from approximately $15.43 to a low of $14.68 before stabilizing.
SharpLink currently stakes its Ethereum through established custodians Anchorage and Coinbase but aims to diversify beyond traditional providers. The move to Linea represents a calculated effort to pursue enhanced returns while maintaining capital protection as a top priority. The company has already joined the Linea Consortium, which will steward 75% of the LINEA token distribution.
The Linea network, created by Consensys, is set to launch its mainnet on September 10, with its token generation event (TGE) scheduled for the same date. SharpLink's deep connection to Consensys is notable - Joseph Lubin, Ethereum co-founder and head of Consensys, also serves as chairman of SharpLink. This strategic alignment ensures foundational understanding between the entities.
Management emphasized they are evaluating what share of the treasury to bridge and stake on the new network, with decisions favoring yield optimization without excessive risk. The approach reflects a broader strategy where staking serves both financial returns and support for Ethereum-aligned networks.