USDCapital B, Sharplink Expand Crypto Treasury Strategies
Bitcoin Accumulation and Onchain ETH Yield Drive New Institutional Moves
TL;DR
- Capital B announced a €15.2 million private placement to support additional Bitcoin purchases.
- Galaxy Digital and Sharplink plan a $125 million institutional onchain yield fund backed mainly by Sharplink’s staked ETH treasury.
- Sharplink reported 872,984 ETH in treasury as of May 4, 2026, alongside a large GAAP net loss tied mainly to non-cash crypto accounting effects.
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Capital B raised fresh capital for its Bitcoin treasury strategy, while Galaxy Digital and Sharplink moved toward a new institutional DeFi fund designed to generate yield from Sharplink’s Ethereum treasury holdings.
Capital B announced a €15.2 million private placement on May 11, 2026, with global institutional investors including Adam Back and TOBAM. The company said the raise supports its Bitcoin Treasury Company strategy and long-term bitcoin-per-fully-diluted-share growth plan.
The transaction consists of 23,038,844 shares with four share subscription warrants attached to each share. Capital B priced each ABSA at €0.66, including €0.04 of nominal value and €0.62 of issuance premium. The company said the pricing matched the average VWAP over the five trading days before pricing and represented a 1.51% premium to the May 8, 2026 closing price.
Each ABSA carries two Warrant 2026-03 instruments with a €0.86 exercise price, one Warrant 2026-04 at €1.12, and one Warrant 2026-05 at €1.46. Each warrant grants the right to subscribe to one ordinary share and carries a five-year maturity.
Capital B said full warrant exercise would generate an additional €99.1 million through 92,155,376 additional ordinary shares. The company said this includes €39.6 million tied to Warrant 2026-03, €25.8 million tied to Warrant 2026-04, and €33.6 million tied to Warrant 2026-05.
The company expects gross proceeds of €15.2 million at closing and estimated net proceeds of €14.4 million after fees and transaction-related expenses. Capital B said the proceeds, together with ongoing operations, could support the acquisition of 182 additional BTC and lift potential total holdings to 3,125 BTC.
Capital B was reported as the 25th-largest Bitcoin treasury firm with 2,943 BTC worth about $237 million. It was also identified as Europe’s second-largest Bitcoin treasury company after Germany’s Bitcoin Group SE.
Capital B shares rose about 4.3% after the announcement and traded near €0.67, or $0.79, while remaining down about 11% year-to-date. The company said the combined ABSA and warrant pricing produced an average price of €0.63 after the theoretical value of attached warrants, representing a 4.3% overall discount to the average VWAP over the prior 20 trading days.
Capital B said it can trigger an accelerated warrant exercise period if the VWAP of its shares exceeds 130% of the relevant warrant tranche’s exercise price for 20 consecutive trading days. The company said any accelerated exercise period would last 20 trading days and unexercised warrants would become null and void after the period ends.
Maxim Group LLC is acting as lead placement agent and Marex S.A. is acting as co-manager for the private placement on a best-efforts basis without underwriting settlement and delivery of the ABSAs.
The raise followed a smaller $1.3 million raise from Adam Back one week earlier. Strategy had also raised $2.5 billion on April 20 through Stretch and Class A common stock sales, while XCE raised $794,000 on April 23 in an Adam Back-backed round.
Nakamoto announced an actively managed Bitcoin derivatives program on April 24 to generate recurring volatility income and hedge part of its corporate BTC holdings after disclosing the March 30 sale of 284 BTC worth about $20 million at the time. Genius Group had earlier sold its remaining 84 BTC for about $5.7 million in February and used the proceeds toward repayment of an $8.5 million debt obligation.
Galaxy and Sharplink Move Toward Institutional DeFi Yield Fund
Galaxy Digital and Sharplink entered a non-binding memorandum of understanding on May 9, 2026, subject to definitive documentation, to form the Galaxy Sharplink Onchain Yield Fund, LP. The planned private investment vehicle is designed to deploy capital across DeFi liquidity protocols and other onchain yield-generating strategies.
The fund is expected to launch in the coming weeks with $125 million in commitments. Sharplink is expected to contribute $100 million from its staked Ethereum treasury, while Galaxy is expected to contribute $25 million and serve as investment manager.
The structure is designed to allow Sharplink to maintain long-term ETH exposure while deploying balance-sheet capital into actively managed institutional onchain yield strategies. Galaxy said the fund will allocate capital to DeFi liquidity protocols, blockchain-based financial applications, and other onchain yield opportunities under its institutional research and risk-management framework.
Mike Novogratz, Founder and CEO of Galaxy, said “institutional capital is moving onchain.”
Joseph Chalom, Chief Executive Officer of Sharplink, said Sharplink aims to make its ETH “maximally productive.”
Matthew Sheffield, Sharplink’s Chief Investment Officer, said the fund aims to preserve core staked Ethereum exposure while generating excess returns for shareholders.
Sharplink released first-quarter 2026 results on May 11, 2026, five minutes after the fund announcement. The company reported holding approximately 870,821 ETH as of March 31, 2026 and 872,984 ETH as of May 4, 2026.
The latest ETH treasury balance consisted of 590,823 native ETH, 209,789 ETH as-if redeemed from LsETH, and 72,372 ETH as-if redeemed from WeETH.
Sharplink said total staking rewards since launching its Ethereum treasury strategy in June 2025 reached 18,800 ETH as of May 4, 2026 through both native and liquid staking programs.
The company said its ETH Concentration metric more than doubled from 2.0 at the June 2025 launch of its Ethereum treasury strategy to 4.02. Sharplink calculates the metric by dividing ETH holdings, including as-if redeemed LsETH, by each 1,000 assumed diluted shares outstanding.
Sharplink reported Q1 2026 revenue of $12.1 million, up from $0.7 million in Q1 2025. The increase was primarily driven by the company’s ETH treasury strategy launched on June 2, 2025.
The company said Q1 revenue included $11.5 million from staking and $557,000 from affiliate marketing, compared with no staking revenue and $742,000 of affiliate marketing revenue during the same quarter a year earlier.
Sharplink reported a Q1 2026 net loss of $685.6 million, or $3.25 per diluted share, compared with a $1.0 million loss, or $1.84 per diluted share, in Q1 2025.
The company said the loss was mainly driven by non-cash unrealized losses and impairments, including a $506.7 million unrealized loss tied to ETH market conditions and a $191.7 million LsETH impairment charge. Those effects were partially offset by a $12.0 million net realized gain from ETH-to-LsETH conversions, redemptions, incentives, and rebates.
Sharplink said the unrealized losses and impairment charges reflect U.S. GAAP accounting treatment and do not represent realized economic losses on ETH holdings or reduce the amount of ETH held by the company.
SG&A expenses rose to $9.9 million in Q1 2026 from $1.1 million a year earlier due mainly to investments in infrastructure, talent, and systems used to scale and manage the company’s institutional-grade ETH treasury platform.
Sharplink ended March 31, 2026 with $16.9 million in cash and cash equivalents, down from $28.5 million on Dec. 31, 2025. Total current assets declined to $18.0 million from $31.2 million over the same period.
The company reported approximately $1.7 billion of crypto assets on a U.S. GAAP basis at March 31, 2026, including $1.239 billion of crypto assets at fair value and $486.9 million of crypto assets at cost.
Sharplink’s total assets fell to $1.744 billion at March 31, 2026 from $2.432 billion at Dec. 31, 2025. Total liabilities declined to $4.2 million from $12.7 million, while total stockholders’ equity fell to $1.740 billion from $2.419 billion.
Sharplink had 199,125,509 common shares outstanding at March 31, 2026, compared with 198,646,255 at Dec. 31, 2025. Basic and diluted weighted-average shares for continuing and discontinued operations stood at 210,865,894 in Q1 2026 versus 531,226 in Q1 2025.
Sharplink said it transitioned the majority of its ETH treasury management in-house using an institutional-grade team to source and execute ETH productivity opportunities intended to improve long-term ETH-per-share accretion.
Joseph Chalom said “risk-adjusted, ETH-denominated returns” are foundational to Sharplink’s strategy.
Joseph Lubin, Sharplink Chairman, Founder and CEO of Consensys and Co-Founder of Ethereum, said Ethereum is maturing into “programmable financial infrastructure.”
Sharplink’s risk disclosures warned that the Galaxy Sharplink Onchain Yield Fund may not launch on the expected timeline or at all. The company also warned that commitments may not be funded, investment objectives may not be achieved, and strategies could generate losses tied to smart contract vulnerabilities, protocol failures, liquidity risks, impermanent loss, governance risks, regulatory uncertainty, counterparty risk, custodial risk, operational risk, Ethereum price volatility, and potential total loss of capital deployed onchain.
FAQ
What is Capital B using the raise for?
Capital B said the proceeds are intended primarily for additional Bitcoin accumulation.
How much additional capital could Capital B raise from warrants?
The company said full warrant exercise could generate another €99.1 million.
What is the Galaxy Sharplink Onchain Yield Fund?
It is a planned private institutional fund focused on DeFi and onchain yield strategies.
Did Sharplink say its ETH holdings declined because of the accounting loss?
No. Sharplink said the accounting charges did not reduce its ETH holdings.
This article has been refined and enhanced by ChatGPT.
