SharpLink’s ETH Plans Shift as $17M Galaxy Transfer Sparks Fears of Year-End Rebalancing

In a move that has stirred fresh debate across the crypto market, SharpLink — the first publicly traded company to adopt Ethereum (ETH) as its primary reserve asset — has transferred a significant tranche of ETH to Galaxy Digital, raising questions about whether the firm is preparing to trim exposure after a volatile month.

Ethereum’s sharp 20% slide in November set the stage for heightened scrutiny. According to data compiled by Onchain Lens from Arkham, one of SharpLink’s tagged wallets shifted 5,442 ETH, valued at roughly $17.02 million, to Galaxy Digital’s OTC desk. The timing has fueled speculation that SharpLink may be quietly preparing a sale or rebalancing its treasury to manage risk heading into 2026.

Strategic ETH Reserve (SER) metrics show the company underwater by $479 million in unrealized ETH losses — with CryptoQuant estimating the figure at over $500 million — as ETH drifts closer to the company’s average cost basis of $3,609. SharpLink last added to its holdings a month ago, but has paused accumulation amid market turbulence.

“With ETH hovering near their acquisition price, this kind of transfer often points to an OTC sale or a defensive portfolio adjustment,” noted investor Rose.

Even so, SharpLink remains the second-largest institutional holder of ETH worldwide, sitting on 859,853 ETH, or 0.712% of the entire supply — a position valued above $2.6 billion.

But shareholders have felt the pain. SBET stock has cratered from above $80 when the ETH-reserve strategy began to $10.55 today — an 86% decline — and now trades at a 19% discount to NAV. Broader DAT behavior reflects similar hesitation: daily ETH accumulation has slowed sharply across November, signaling a shift from aggressive buying to caution as the year closes.

Still, SharpLink insists its long-term plans remain unchanged.

On X, the firm disclosed it generated 336 ETH in staking rewards last week, bringing total staking income to 7,403 ETH — worth over $1.1 million. Nearly all its ETH remains staked, supporting the company’s belief that long-term yield can offset short-term volatility.

“Our treasury continues to generate value regardless of price,” SharpLink stated.

Financially, SharpLink just posted a breakout quarter. The company reported Q3 2025 revenue of $10.8 million, a staggering 1,100% year-over-year jump, with net income hitting $104.3 million — largely driven by its Ethereum-based treasury model. This makes SharpLink one of the first ETH-native DATs to achieve positive earnings.

With the transfer to Galaxy and slowing accumulation patterns across other Ethereum-focused DATs, the sector appears to be entering a new phase: less aggressive accumulation, more strategic positioning, and a focus on surviving — and thriving — through volatility.

But the long-term bet remains clear: SharpLink and its peers are positioning for a future where ETH plays a far more dominant role in corporate finance.