Nasdaq-listed public company SharpLink announced plans to stake $200 million of their Ethereum through the Lido protocol on August 13. This move will convert the asset holdings into wstETH (wrapped staked ETH) tokens, an ERC-20 standard representing a share of ETH ownership in the Lido staking pool. Unlike regular stETH, whose balance increases as rewards accrue, the value of wstETH increases through changes in its exchange ratio relative to stETH.
What makes this allocation stand out is not just the nominal amount, but where the tokens will end up.
Not Just Depositing at Anchorage Digital
All wstETH tokens resulting from this staking will be custodied under the supervision of Anchorage Digital Bank, a national trust bank that has obtained operating approval from the OCC. Anchorage Digital itself has built a direct integration path with the Lido protocol since July, making the transfer and storage of large-scale institutional assets run smoothly. SharpLink CEO Joseph Chalom stated that this allocation to Lido will make their Ethereum stockpile far more productive, while also opening the door to various DeFi integrations that accept wstETH.
Lido currently dominates the market by locking around $16.5 billion in ETH, connecting to more than 100 protocols, and supplying around $10 billion in assets as collateral in the DeFi ecosystem. With SharpLink holding 888,938 ETH as of August 3, staking has indeed become the lifeblood of their revenue. This practice contributed $11.2 million of the total $11.5 million in revenue they generated in the second quarter.
A Way Out of the Second-Quarter Red Ink
Behind this expansion strategy, SharpLink is struggling with issues in its financial reports. In the second quarter of 2026, the company recorded a net loss of up to $394.3 million. This figure includes an asset write-down of $76.1 million on their other liquid staking token holdings, namely LsETH and weETH. Pressure increased after SharpLink’s name was included in the simulated exclusion list of the MSCI index under a new methodology proposal referencing May 2026 data.
The stock market responded positively to this portfolio restructuring. SHARPLINK shares closed up 2.27% at $6.32 in trading on August 13 following the announcement. From a regulatory perspective, their move relies on SEC Division of Corporation Finance staff guidance from August 2025, which states that certain liquid staking models do not qualify as securities transactions, though this guidance has not yet become a formal rule.
For both retail and institutional shareholders, the situation is clear: SharpLink is relying fully on the engine of DeFi protocols to rescue the company’s balance sheet.
As reported by crypto.news.
Also read: How Crypto Staking Works and Its Risks
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
