Sharplink’s decision to stake part of its Ethereum treasury on Layer 2 network Linea has drawn a cool market reaction: the company’s Nasdaq-listed shares (SBET) are trading at $15.73, down about 11% versus five trading days ago.
Trader sentiment on prediction market Myriad mirrors that caution. As of this week, 82.5% of users believe Sharplink won’t reach its stated target of 1 million ETH by Sept. 16. The firm currently holds 837,230 ETH—roughly $3.62 billion at current prices.
Market participants say the decline is tied less to the staking plan itself and more to funding mechanics. Sharplink has been raising capital through equity financings, issuing new SBET shares to buy ETH—a process that dilutes existing shareholders. Samantha Bohbot of RockawayX says many digital asset treasury (DAT) investors behave like short-term traders focused on premiums rather than long-term yield.
That dynamic matters because yield-generation plans are a long-term proposition. Sharplink already stakes some ETH on Ethereum mainnet and has earned 2,318 ETH (about $10 million) in rewards since June. Moving more ETH to Linea may be more significant for Linea’s ecosystem than for SBET’s short-term market performance.
Institutional concerns remain. Consensys led a $425 million PIPE investment and placed Joseph Lubin on Sharplink’s board, but experts warn Linea is new and full yield and liquidity terms haven’t been disclosed—introducing operational and counterparty risk investors must weigh.
Why it matters: the episode highlights two forces shaping DAT stocks—funding dilution and the market’s evolving appetite for on-chain yield. Over time, DATs that reliably convert crypto treasuries into sustainable returns could trade at a premium, while others may lag.
Source: Decrypt. Read the original coverage for full details.