Q2 2026 Sharplink Inc Earnings Call

August 10, 2026

Operator: Good morning everyone, and thank you for participating in today's conference call to discuss SharpLink's financial and operating results for the Q2 ended 30 June 2026. By now, everyone should have access to the Q2 2026 earnings press release, which was issued this morning at approximately 8:00 AM Eastern Time. The release is available in the investor relations section of SharpLink's website. This call will also be available for a webcast replay on the SharpLink's website. Following management's prepared remarks, we will open the call for questions. I will now hand the call over to SharpLink's Vice President of Business and Legal Affairs, Dodi Handy, for introductory comments.

Operator: Good morning everyone, and thank you for participating in today's conference call to discuss SharpLink's Financial and Operating Results for the Q2 ended 30 June 2026. By now, everyone should have access to the Q2 2026 earnings press release, which was issued this morning at approximately 8:00AM Eastern Time. The release is available in the investor relations section of SharpLink's website. This call will also be available for a webcast replay on the SharpLink's website. Following management's prepared remarks, we will open the call for questions. I will now hand the call over to SharpLink's Vice President of Business and Legal Affairs, Dodi Handy, for introductory comments.

Speaker #1: By now, everyone should have access to the second quarter 2026 earnings press release, which was issued this morning at approximately 8:00 a.m. Eastern Time.

Speaker #1: The release is available in the Investor Relations section of SharpLink's website. This call will also be available for webcast replay on the SharpLink's website.

Speaker #1: Following management's prepared remarks, we will open the call for questions. I will now hand the call over to SharpLink's Vice President of Business and Legal Affairs, Dodi Handy, for introductory comments.

Speaker #2: Thank you, Operator. Please see SharpLink's quarterly report on Form 10-Q, filed on Friday, August 7, 2026, with the SEC, along with the earnings press release that crossed the wire this morning.

Dodi Handy: Thank you, operator. Please see SharpLink's quarterly report on Form 10-Q, filed on Friday, 7 August 2026, with the SEC, along with the earnings press release that crossed the wire this morning. These documents list some of the factors that may cause the results of SharpLink to differ materially from what we say today and identify some of the risks and uncertainties that could affect our business, prospects, and future results. SharpLink assumes no duty and does not undertake to update any forward-looking statements. Any forward-looking statement made by us during this call is based only on information currently available to us and speaks only as of the date when it is made. In addition, we may be discussing or providing certain metrics today, such as ETH per share and other treasury-related performance metrics that are not GAAP measures.

Speaker #2: These documents list some of the factors that may cause the results of SharpLink to differ materially from what we say today and identify some of the risks and uncertainties that could affect our business, prospects, and future results.

Speaker #2: SharpLink assumes no duty and does not undertake to update any forward-looking statements. Any forward-looking statement made by us during this call is based only on information currently available to us and speaks only as of the date when it is made.

Speaker #2: In addition, we may be discussing or providing certain metrics today, such as ETH per share and other treasury-related performance metrics, that are not GAAP measures.

Speaker #2: Please see our earnings press release and SEC filings for further information regarding these metrics. To set the agenda for today's call, we will begin with Joe Lubin, SharpLink's Chairman of the Board, Co-Founder of Ethereum, and Founder and CEO of ConsenSys.

Dodi Handy: Please see our earnings press release and SEC filings for further information regarding these metrics. To set the agenda for today's call, we will begin with Joseph Lubin, SharpLink's Chairman of the Board, co-founder of Ethereum, and founder and CEO of ConsenSys. Joe will discuss Ethereum's evolution and a foundational infrastructure for programmable financial and economic activity, including the network's technological roadmap, expanding institutional adoption, and an ecosystem that grows increasingly capable of supporting global finance at scale. Next, SharpLink's Chief Executive Officer, Joseph Chalom, will discuss the Ethereum institutional super cycle, SharpLink's ecosystem initiatives, recent capital allocation activity, and how SharpLink is putting its ETH treasury to work through staking and active treasury management. Finally, our Chief Financial Officer, Robert DeLucia, will recap SharpLink's Q2 financial results, liquidity position, and key ETH treasury performance metrics.

Dodi Handy: Please see our earnings press release and SEC filings for further information regarding these metrics. To set the agenda for today's call, we will begin with Joe Lubin, SharpLink's Chairman of the Board, co-founder of Ethereum, and founder and CEO of ConsenSys. Joe will discuss Ethereum's evolution and a foundational infrastructure for programmable financial and economic activity, including the network's technological roadmap, expanding institutional adoption, and an ecosystem that grows increasingly capable of supporting global finance at scale. Next, SharpLink's Chief Executive Officer, Joseph Chalom, will discuss the Ethereum institutional super cycle, SharpLink's ecosystem initiatives, recent capital allocation activity, and how SharpLink is putting its ETH treasury to work through staking and active treasury management. Finally, our Chief Financial Officer, Bob DeLucia, will recap SharpLink's Q2 financial results, liquidity position, and key ETH treasury performance metrics.

Speaker #2: Joe will discuss Ethereum's evolution and a foundational infrastructure for programmable financial and economic activity, including networks, technological roadmap, expanding institutional adoption, and an ecosystem that grows increasingly capable of supporting global finance at scale.

Speaker #2: Next, SharpLink's Chief Executive Officer, Joseph Chalom, will discuss the Ethereum institutional supercycle, SharpLink's ecosystem initiatives, recent capital allocation activity, and how SharpLink is putting its ETH treasury to work through staking and active treasury management.

Speaker #2: Finally, our Chief Financial Officer, Bob DeLucia, will recap SharpLink's second quarter financial results, liquidity position, and key ETH treasury performance metrics. Now, at this time, I'd like to turn the call over to SharpLink's Chairman of the Board, Joseph Lubin.

Dodi Handy: Now, at this time, I'd like to turn the call over to SharpLink's Chairman of the Board, Joseph Lubin. Joe, the floor is yours.

Speaker #2: Joe, the floor is yours.

Speaker #3: Thank you, Dodi, and good morning, everyone. As a Co-Founder of Ethereum and CEO of Consensys, I have had the privilege of helping build the ecosystem from its earliest days.

Joseph Lubin: Thank you, Dodi, and good morning, everyone. As a co-founder of Ethereum and CEO of ConsenSys, I have had the privilege of helping build the ecosystem from its earliest days. For much of the first decade, Ethereum was often evaluated through the narrow lens of diverse waves of innovation, crypto market cycles, and short-term asset prices. Those forces remain visible, but they are increasingly incomplete measures of the progress taking place visibly and beneath the surface. Ethereum is transitioning from technology once viewed as experimental into core infrastructure for programmable financial and economic activity. Stablecoins, tokenized assets, decentralized markets, and automated commerce are operating today, settling meaningful value and attracting increasingly sophisticated users, human, corporate, and machine. It is clear that this market is unique compared to others. Ethereum now benefits from more mature custody, security, and compliance infrastructure, deeper institutional expertise, and a more constructive regulatory framework.

Joe Lubin: Thank you, Dodi, and good morning, everyone. As a co-founder of Ethereum and CEO of ConsenSys, I have had the privilege of helping build the ecosystem from its earliest days. For much of the first decade, Ethereum was often evaluated through the narrow lens of diverse waves of innovation, crypto market cycles, and short-term asset prices. Those forces remain visible, but they are increasingly incomplete measures of the progress taking place visibly and beneath the surface. Ethereum is transitioning from technology once viewed as experimental into core infrastructure for programmable financial and economic activity. Stablecoins, tokenized assets, decentralized markets, and automated commerce are operating today, settling meaningful value and attracting increasingly sophisticated users, human, corporate, and machine. It is clear that this market is unique compared to others. Ethereum now benefits from more mature custody, security, and compliance infrastructure, deeper institutional expertise, and a more constructive regulatory framework.

Speaker #3: For much of the first decade, Ethereum was often evaluated through the narrow lens of diverse ways of innovation, crypto market cycles, and short-term asset prices.

Speaker #3: Those forces remain visible, but they are increasingly incomplete measures of the progress taking place, both visibly and beneath the surface. Ethereum is transitioning from technology once viewed as experimental into core infrastructure for programmable financial and economic activity.

Speaker #3: Stablecoins, tokenized assets, decentralized markets, and automated commerce are operating today settling meaningful value and attracting increasingly sophisticated users. Human corporate and machine. It's clear that this market is unique compared to others.

Speaker #3: Ethereum now benefits from more mature custody, security, and compliance infrastructure, deeper institutional expertise, and a more constructive regulatory framework. Major financial and technology companies are moving beyond proof-of-concept projects toward production systems.

Joseph Lubin: Major financial and technology companies are moving beyond proof-of-concept projects towards production systems. Technological adoption, regulatory development, and asset prices will not always move on the same timeline, but the direction of travel is increasingly clear. Ethereum is foundational infrastructure for the programmable global economy. Many factors and stakeholders are increasingly aligning around this inevitable outcome. The momentum is not exclusively top-down. Alongside accelerating institutional participation, we are seeing renewed excitement and engagement from retail users, developers, and entrepreneurs. Institutional adoption brings scale, capital, and credibility, while grassroots participation continues to drive experimentation, applications, and community growth. Together, they reinforce our belief that we are entering a new Ethereum era, supported by broad-based conviction rather than any single category of participant. The Ethereum economy is becoming an increasingly intrinsic part of the diverse global economy.

Joe Lubin: Major financial and technology companies are moving beyond proof-of-concept projects towards production systems. Technological adoption, regulatory development, and asset prices will not always move on the same timeline, but the direction of travel is increasingly clear. Ethereum is foundational infrastructure for the programmable global economy. Many factors and stakeholders are increasingly aligning around this inevitable outcome. The momentum is not exclusively top-down. Alongside accelerating institutional participation, we are seeing renewed excitement and engagement from retail users, developers, and entrepreneurs. Institutional adoption brings scale, capital, and credibility, while grassroots participation continues to drive experimentation, applications, and community growth. Together, they reinforce our belief that we are entering a new Ethereum era, supported by broad-based conviction rather than any single category of participant. The Ethereum economy is becoming an increasingly intrinsic part of the diverse global economy.

Speaker #3: Technological adoption, regulatory development, and asset prices will not always move on the same timeline. But the direction of travel is increasingly clear. Ethereum is foundational infrastructure for the programmable global economy.

Speaker #3: Manufacturers and stakeholders are increasingly aligning around this inevitable outcome. The momentum is not exclusively top-down. Alongside accelerating institutional participation, we are seeing renewed excitement and engagement from retail users, developers, and entrepreneurs.

Speaker #3: Institutional adoption brings scale, capital, and credibility, while grassroots participation continues to drive experimentation, applications, and community growth. Together, they reinforce our belief that we are entering a new Ethereum era, supported by broad-based conviction rather than any single category of participant.

Speaker #3: The Ethereum economy is becoming an increasingly intrinsic part of the diverse global economy. Ethereum's defining advantage is a credibly neutral, censorship-resistant, programmable infrastructure that is guaranteed to execute properly formed transactions or programs.

Joseph Lubin: Ethereum's defining advantage is a credibly neutral, censorship-resistant, programmable infrastructure that is guaranteed to execute properly formed transactions or programs. It enables institutions and other participants to transact and coordinate through automated, transparent rules without surrendering control to a single commercial intermediary. Thus eliminating or reducing exposure to counterparty risk and other forms of risk. The Ethereum Foundation has described this as shared neutral digital infrastructure for governments, institutions, and communities. Its applications extend beyond payments to asset issuance, trade settlement, identity registries, attestations, and tokenized markets. Over time, we expect ETH's value proposition to become increasingly aligned with the amount, quality, and strategic importance of activity across the network. Robinhood's decision to build its blockchain infrastructure on Ethereum is one recent proof point. In its Q2 results, Robinhood described Robinhood Chain as a permissionless, AI native, financial grade Ethereum layer 2 blockchain built to institutional standards.

Joe Lubin: Ethereum's defining advantage is a credibly neutral, censorship-resistant, programmable infrastructure that is guaranteed to execute properly formed transactions or programs. It enables institutions and other participants to transact and coordinate through automated, transparent rules without surrendering control to a single commercial intermediary. Thus eliminating or reducing exposure to counterparty risk and other forms of risk. The Ethereum Foundation has described this as shared neutral digital infrastructure for governments, institutions, and communities. Its applications extend beyond payments to asset issuance, trade settlement, identity registries, attestations, and tokenized markets. Over time, we expect ETH's value proposition to become increasingly aligned with the amount, quality, and strategic importance of activity across the network. Robinhood's decision to build its blockchain infrastructure on Ethereum is one recent proof point. In its Q2 results, Robinhood described Robinhood Chain as a permissionless, AI native, financial grade Ethereum layer 2 blockchain built to institutional standards.

Speaker #3: It enables institutions and other participants to transact and coordinate through automated, transparent rules, without surrendering control to a single commercial intermediary, thus eliminating or reducing exposure to counterparty risk and other forms of risk.

Speaker #3: The Ethereum Foundation has described this as shared, neutral, digital infrastructure for governments, institutions, and communities. Its applications extend beyond payments to asset issuance, trade settlement, identity, registries, attestations, and tokenized markets.

Speaker #3: Over time, we expect ETH's value proposition to become increasingly aligned with the amount, quality, and strategic importance of activity across the network. Robinhood's decision to build its blockchain infrastructure on Ethereum is one recent proof point.

Speaker #3: In its Q2 results, Robinhood described Robinhood Chain as a permissionless, AI-native, financial-grade Ethereum Layer 2 blockchain built to institutional standards—a platform with 28 million customers and $369 billion in assets choosing Ethereum rails for its next generation of products.

Joseph Lubin: A platform with 28 million customers and $369 billion in assets, choosing Ethereum rails for its next generation of products. The institutions that hold the world's assets are moving in the same direction. Just last week, BlackRock, the world's largest asset manager, expanded its tokenized cash platform with new products built on Ethereum, building on the continued growth of its BUIDL Fund. JP Morgan, a bank whose CEO once publicly dismissed digital assets, has also deepened its Ethereum footprint, filing for a second tokenized money market fund on the network and expanding institutional use of its JPM Coin deposit token on Ethereum's base network. Ethereum ecosystem is also evolving to support this next stage of adoption.

Joe Lubin: A platform with 28 million customers and $369 billion in assets, choosing Ethereum rails for its next generation of products. The institutions that hold the world's assets are moving in the same direction. Just last week, BlackRock, the world's largest asset manager, expanded its tokenized cash platform with new products built on Ethereum, building on the continued growth of its BUIDL Fund. JP Morgan, a bank whose CEO once publicly dismissed digital assets, has also deepened its Ethereum footprint, filing for a second tokenized money market fund on the network and expanding institutional use of its JPM Coin deposit token on Ethereum's base network. Ethereum ecosystem is also evolving to support this next stage of adoption.

Speaker #3: The institutions that hold the world's assets are moving in the same direction. Just last week, BlackRock, the world's largest asset manager, expanded its tokenized cash platform with new products built on Ethereum.

Speaker #3: Building on the continued growth of its biddle fund. JP Morgan, a bank whose CEO once publicly dismissed digital assets, has also deepened its Ethereum footprint, filing for a second tokenized money market fund on the network.

Speaker #3: And expanding institutional use of its JPM Coin deposit token on Ethereum's Base network. The Ethereum ecosystem is also evolving to support this next stage of adoption.

Speaker #3: The Ethereum Foundation continues to play an essential role in protecting the protocol's core properties and long-term resilience, while additional specialized steward organizations are emerging to add focus and execution across important areas of the ecosystem.

Joseph Lubin: The Ethereum Foundation continues to play an essential role in protecting the protocol's core properties and long-term resilience, while additional specialized steward organizations are emerging to add focus and execution across important areas of the ecosystem. We are supporting that evolution directly through investment in ETH Labs, Ethereum Institutional, and EthSystems, which Joseph will discuss in greater detail. These organizations are designed to address protocol development, institutional engagement, and privacy infrastructure while preserving the independence and credible neutrality that differentiates Ethereum from other blockchain ecosystems. This diversification of specialized steward organizations will greatly strengthen, accelerate, and broaden the Ethereum ecosystem. The protocol roadmap is advancing in parallel. The upcoming Glamsterdam hard fork marks the first concrete step in the broader Lean Ethereum roadmap that Vitalik recently outlined, a 3 to 4-year effort to rebuild Ethereum's core around lean consensus, lean data, and lean execution.

Joe Lubin: The Ethereum Foundation continues to play an essential role in protecting the protocol's core properties and long-term resilience, while additional specialized steward organizations are emerging to add focus and execution across important areas of the ecosystem. We are supporting that evolution directly through investment in ETH Labs, Ethereum Institutional, and EthSystems, which Joseph will discuss in greater detail. These organizations are designed to address protocol development, institutional engagement, and privacy infrastructure while preserving the independence and credible neutrality that differentiates Ethereum from other blockchain ecosystems. This diversification of specialized steward organizations will greatly strengthen, accelerate, and broaden the Ethereum ecosystem. The protocol roadmap is advancing in parallel. The upcoming Glamsterdam hard fork marks the first concrete step in the broader Lean Ethereum roadmap that Vitalik recently outlined, a 3 to 4-year effort to rebuild Ethereum's core around lean consensus, lean data, and lean execution.

Speaker #3: We are supporting that evolution directly through investment in ETH Labs, Ethereum Institutional, and ETH Systems, which Joseph will discuss in greater detail. These organizations are designed to address protocol development, institutional engagement, and privacy infrastructure while preserving the independence and credible neutrality that differentiates Ethereum from other blockchain ecosystems.

Speaker #3: This diversification of specialized steward organizations will greatly strengthen accelerate and broaden the Ethereum ecosystem. The protocol roadmap is advancing in parallel. The upcoming Glamsterdam-Hardfork marks the first concrete step in the broader Lean Ethereum roadmap that Vitalik recently outlined.

Speaker #3: A three-to-four-year effort to rebuild Ethereum's core, around lean consensus, lean data, and lean execution. Its two headlined changes, EPVS Enshrined Proposer Builder Separation, and BAL Block Level Access Lists, provide the technical foundation for subsequent upgrades.

Joseph Lubin: Its two headline changes, ePBS, enshrined proposer-builder separation, and BAL, block-level access lists, provide the technical foundation for subsequent upgrades, including the next hard fork, Pagoda. For institutions, the significance is that Glamsterdam is not a one-off upgrade, but the next major move in a multi-year evolution towards a much faster, more private, and quantum-resistant Ethereum, with capacity and performance improvements expected to powerfully compound across each successive fork. Ethereum's first decade proved the technology. The next will be defined by its adoption at massive scale as the network moves rapidly from experimentation to real-world implementation. That transition has significant implications for the company's positions to participate in Ethereum's growth. That is why we are building SharpLink to be an active participant in this new Ethereum era.

Joe Lubin: Its two headline changes, ePBS, enshrined proposer-builder separation, and BAL, block-level access lists, provide the technical foundation for subsequent upgrades, including the next hard fork, Pagoda. For institutions, the significance is that Glamsterdam is not a one-off upgrade, but the next major move in a multi-year evolution towards a much faster, more private, and quantum-resistant Ethereum, with capacity and performance improvements expected to powerfully compound across each successive fork. Ethereum's first decade proved the technology. The next will be defined by its adoption at massive scale as the network moves rapidly from experimentation to real-world implementation. That transition has significant implications for the company's positions to participate in Ethereum's growth. That is why we are building SharpLink to be an active participant in this new Ethereum era.

Speaker #3: Including the next hard fork Hagoda. For institutions, the significance is that Glamsterdam is not a one-off upgrade, but the next major move in a multi-year evolution towards a much faster, more private, and quantum-resistant Ethereum, with capacity and performance improvements expected to powerfully compound across each successive fork.

Speaker #3: Ethereum's first decade proved the technology. The next will be defined by its adoption at massive scale as the network moves rapidly from experimentation to real-world implementation.

Speaker #3: That transition has significant implications for the company's position to participate in Ethereum's growth. That is why we, our building, SharpLink, to be an active participant in this new Ethereum era.

Speaker #3: Our objective is to provide public market investors with disciplined, productive exposure to Ethereum's long-term growth, while supporting the ecosystem that underpins our treasury asset, Ether.

Joseph Lubin: Our objective is to provide public market investors with disciplined, productive exposure to Ethereum's long-term growth while supporting the ecosystem that underpins our treasury asset, Ether. As Ethereum's role in the global economy expands, we intend for SharpLink to grow alongside it. I would now like to turn the call over to SharpLink's Chief Executive Officer, Joseph Chalom, to discuss how SharpLink is putting that strategy into place. Joseph.

Joe Lubin: Our objective is to provide public market investors with disciplined, productive exposure to Ethereum's long-term growth while supporting the ecosystem that underpins our treasury asset, Ether. As Ethereum's role in the global economy expands, we intend for SharpLink to grow alongside it. I would now like to turn the call over to SharpLink's Chief Executive Officer, Joseph Chalom, to discuss how SharpLink is putting that strategy into place. Joseph.

Speaker #3: As Ethereum's role in the global economy expands, we intend for SharpLink to grow alongside it. I would now like to turn the call over to SharpLink's Chief Executive Officer, Joseph Chalom, to discuss how SharpLink is putting that strategy into place.

Speaker #3: Joseph?

Speaker #2: Thank you, Joe, and good morning, everyone. Thank you for joining us. Joe briefly described the new Ethereum era taking shape. From my perspective, we are well underway in the institutional supercycle.

Joseph Chalom: Thank you, Joe, and good morning, everyone. Thank you for joining us. Joe briefly described the new Ethereum era taking shape. From my perspective, we are well underway in the institutional super cycle. This new era is a crucial part of making sure the network is ready for the coming demand. Importantly, we are not just observing this new era take shape, we are actively building it. We deploy ETH capital back into the ecosystem through staking, our DeFi deployments, and the Galaxy SharpLink Onchain Yield Fund. We are also funding new institutions to accelerate institutional adoption, including ETH Labs, Ethereum Institutional, and EthSystems, which I will go into more detail on later in my remarks. We are proud to be one of Ethereum's most active stewards and have taken a deliberate approach to building relationships, supporting critical infrastructure, and creating new ways to make our ETH productive.

Speaker #2: This new era is a crucial part of making sure the network is ready for the coming demand. Importantly, we're not just observing this new era take shape.

Speaker #2: We are actively building it. We deploy ETH capital back into the ecosystem through staking, our DeFi deployments, and the galaxy SharpLink on-chain yield fund.

Speaker #2: We're also funding new institutions to accelerate institutional adoption, including ETH Labs, Ethereum Institutional, and ETH Systems, which I will go into more detail on later in my remarks.

Speaker #2: We are proud to be one of Ethereum’s most active stewards, and have taken a deliberate approach to building relationships, supporting critical infrastructure, and creating new ways to make our ETH productive.

Speaker #2: We are genuinely energized by the momentum we're seeing and the caliber of engagement it's generating. We believe our efforts have helped shift the narrative on Ethereum from one defined by short-term price swings to one grounded in long-term value creation.

Joseph Chalom: We are genuinely energized by the momentum we are seeing and the caliber of engagement it is generating. We believe our efforts have helped shift the narrative on Ethereum from one defined by short-term price swings to one grounded in long-term value creation, reinforcing our conviction that this is the moment to lead with the discipline and ambition this Ethereum opportunity deserves. This turnaround reflects real work by real people. Joe Lubin, myself, Tom Lee of Bitmine, and a number of other ecosystem stakeholders have been actively investing directly in Ethereum's infrastructure. We are telling its story more effectively than we have in the past, and it is working. Sentiment has turned very positive. Ethereum is winning. During the month of July, ETH appreciated 22% compared to 11% for Bitcoin, while Solana declined 5%. That price performance is being matched by capital flows.

Speaker #2: Reinforcing our conviction that this is the moment to lead with the discipline and ambition this Ethereum opportunity deserves. This turnaround reflects real work by real people.

Speaker #2: Joe Lubin, myself, Tom Lee of Bitmine, and a number of other ecosystem stakeholders have been actively investing directly in Ethereum's infrastructure. We are telling its story more effectively than we have in the past, and it's working, sentiment has turned very positive Ethereum is winning.

Speaker #2: During the month of July, ETH appreciated 22% compared to 11% for Bitcoin, while Solana declined 5%. That price performance is being matched by capital flows.

Speaker #2: According to BlockWorks, US spot Ethereum ETFs pulled in approximately $349 million in net inflows in July, outpacing Bitcoin's ETFs at roughly $281 million and Solana ETFs at approximately $25 million over the same period.

Joseph Chalom: According to Blockworks, US spot Ethereum ETFs pulled in approximately USD 349 million in net inflows in July, outpacing Bitcoin's ETFs at roughly USD 281 million, and Solana ETFs at approximately USD 25 million over the same period. Short-term asset prices do remain volatile, but ETH's price performance and the capital flowing in are signals reinforcing our belief that a new Ethereum era is taking shape alongside continued progress across institutional adoption, network development, and on-chain activity. We spent the last year building for this exact environment. This past June marked our first anniversary since launching our Ethereum treasury strategy. In that time, we raised over USD 3.3 billion in capital and became the world's second-largest corporate holder of ETH. We recruited a world-class team spanning traditional finance and digital assets expertise.

Speaker #2: Short-term asset prices do remain volatile, but ETH’s price performance and the capital flowing in are signals reinforcing our belief that a new Ethereum era is taking shape, alongside continued progress across institutional adoption, network development, and on-chain activity.

Speaker #2: We spent the last year building for this exact environment. This past June marked our first anniversary since launching our Ethereum treasury strategy. In that time, we raised over $3.3 billion in capital and became the world's second-largest corporate holder of ETH.

Speaker #2: We recruited a world-class team spanning both traditional finance and digital assets expertise. We have been among the most active companies putting that ETH to work, establishing institutional custody and staking infrastructure to make our treasury productive from day one.

Joseph Chalom: We have been among the most active companies putting that ETH to work, establishing institutional custody and staking infrastructure to make our treasury productive from day one. Just as importantly, we have built a culture of institutional risk management and governance from the outset, which has kept us disciplined and resilient through a volatile crypto cycle. The market is validating the institutional character of the platform we have built. As part of the Russell Index June 2026 reconstitution, SharpLink was added to the Russell 2000 and the Russell 3000 indices. According to FTSE Russell, approximately USD 12.2 trillion in assets are benchmarked against Russell US indices. We view our inclusion as an important milestone that broadens institutional visibility and eligibility for index-linked ownership while providing external validation of SharpLink's scale, liquidity, and strategy. I now want to turn to capital allocation.

Speaker #2: Just as importantly, we've built a culture of institutional risk management and governance from the outset, which has kept us disciplined and resilient through a volatile crypto cycle.

Speaker #2: The market is validating the institutional character of the platform we have built. As part of the Russell Index June 2026 Reconstitution, SharpLink was added to the Russell 2000 and the Russell 3000 indices.

Speaker #2: According to FTSE Russell, approximately $12.2 trillion in assets are benchmarked against Russell US indices. We view our inclusion as an important milestone that broadens institutional visibility and eligibility for index-linked ownership, while providing external validation of SharpLink's scale, liquidity, and strategy.

Speaker #2: I now want to turn to capital allocation. We have been consistent from day one about our framework to compound ETH per share and grow net ETH over time.

Joseph Chalom: We have been consistent from day one about our framework to compound ETH per share and grow net ETH over time. We pursue those objectives through two complementary engines. The first is disciplined public market capital allocation, including issuing equity when terms are attractive and accretive, purchasing ETH when doing so improves long-term shareholder economics, and repurchasing SharpLink shares when they trade below our assessment of its intrinsic value. We demonstrated that optionality during the Q2. On 23 June 2026, we completed a USD 75 million registered direct offering, issuing roughly 10 million shares and accompanying warrants at a combined purchase price of USD 7.49 per share and warrant. Importantly, the transaction was completed at a premium to SharpLink's net asset value, providing capital on attractive terms. We used a portion of that capital to acquire approximately 10,000 ETH at an average price of approximately USD 1,611 per ETH.

Speaker #2: We pursue those objectives through two complementary engines. The first is disciplined public market capital allocation, including issuing equity when terms are attractive and accretive.

Speaker #2: Purchasing ETH when doing so improves long-term shareholder economics, and repurchasing SharpLink shares when they trade below our assessment of intrinsic value. We demonstrated that optionality during the second quarter.

Speaker #2: On June 23rd, 2026, we completed a 75 million dollar registered direct offering, issuing roughly 10 million shares and accompanying warrants, at a combined purchase price of 7.49 dollars per share.

Speaker #2: And warrant. Importantly, the transaction was completed at a premium to SharpLink's net asset value, providing capital on attractive terms. We used a portion of that capital to acquire approximately 10,000 ETH at an average price of approximately $1,611 per ETH.

Speaker #2: We also purchased 2.1 million shares during Q2 at an average price of approximately $4.70 per share, for an aggregate purchase price of approximately $10 million.

Joseph Chalom: We also purchased 2.1 million shares during Q2 at an average price of approximately $4.70 per share for an aggregate purchase price of approximately $10 million. Since initiating our repurchase activity in August 2025, we have repurchased approximately 4 million shares at an aggregate cost of approximately $41.7 million. Together, these actions show how we can raise capital on attractive terms, acquire ETH during market dislocations, and repurchase shares when our equity is undervalued, all in support of long-term shareholder value. The second engine is treasury productivity. We stake and selectively deploy our ETH to earn incremental returns above the composite Ethereum staking rate or CESR, a market benchmark for the average annualized yield earned by Ethereum validators. Our most recent example of this was our announcement of the Galaxy SharpLink Onchain Yield Fund.

Speaker #2: Since initiating our repurchase activity in August 2025, we have repurchased approximately 4 million shares at an aggregate cost of approximately $41.7 million. Together, these actions show how we can raise capital on attractive terms acquire ETH during market dislocations and repurchase shares when our equity is undervalued, all in support of long-term shareholder value.

Speaker #2: The second engine is treasury productivity. We stake and selectively deploy our ETH to earn incremental returns above the composite Ethereum staking rate, or CESR, a market benchmark for the average annualized yield earned by Ethereum validators.

Speaker #2: Our most recent example of this was our announcement of the Galaxy SharpLink On-Chain Yield Fund. The fund has $125 million in committed capital, including $100 million from SharpLink and $25 million from Galaxy Digital.

Joseph Chalom: The fund has $125 million in committed capital, including $100 million from SharpLink and $25 million from Galaxy Digital. SharpLink will fund its investment through a contribution of ETH or liquid staked ETH. We are very excited to share that the initial investment opportunities have already been identified. Actual deployment timing will depend on finalizing those opportunities in line with the fund's risk and return standards. We are actively evaluating additional productivity strategies, including other funds, onchain vaults, direct deployments, and structured ecosystem opportunities. Inbound demand has been strong, but access alone is not a reason to deploy capital. We proceed only when the expected incremental ETH return appropriately compensates shareholders for the risk, liquidity profile, and operating burden. That productivity mindset extends beyond our own balance sheet. Our scale, market presence, and connectivity also enable us to serve as an institutional steward of the Ethereum ecosystem.

Speaker #2: SharpLink will fund its investment through a contribution of ETH or liquid staked ETH. We're very excited to share that the initial investment opportunities have already been identified.

Speaker #2: Actual deployment timing will depend on finalizing those opportunities in line with the fund's risk and return standards. We are actively evaluating additional productivity strategies.

Speaker #2: Including other funds, on-chain vaults, direct deployments, and structured ecosystem opportunities. Inbound demand has been strong, but access alone is not a reason to deploy capital.

Speaker #2: We perceive only when the expected incremental ETH return appropriately compensates shareholders for the risk, liquidity profile, and operating burden. That productivity mindset extends beyond our own balance sheet.

Speaker #2: Our scale, market presence, and connectivity also enable us to serve as an institutional steward of the Ethereum ecosystem. As I mentioned earlier, we provided anchor funding to ETH Labs, Ethereum Institutional, and Ethereum Systems.

Joseph Chalom: As I mentioned earlier, we provided anchor funding to ETH Labs, Ethereum Institutional, and EthSystems, three organizations we believe are already generating real momentum and driving the next stage of Ethereum's institutional development. These three independent organizations serve different functions. First, ETH Labs, founded by former senior Ethereum Foundation contributors, is focused on advancing the core protocol, scaling, ecosystem growth, usability, and interoperability. Its work is designed to prepare Ethereum for the next wave of institutional DeFi and agentic finance adoption while reinforcing the network's credible neutrality, security, and resilience. Second, Ethereum Institutional serves as the dedicated institutional front door and helpdesk to the Ethereum ecosystem, assisting banks, asset managers, custodians, and market infrastructure providers move from evaluation to deployment. The organization has built more than 500 institutional relationships and convened over 150 senior executives, representing approximately $250 trillion in combined assets.

Speaker #2: Three organizations we believe are already generating real momentum and driving the next stage of Ethereum's institutional development. These three independent organizations serve different functions.

Speaker #2: First, ETH Labs founded by former senior Ethereum Foundation contributors is focused on advancing the core protocol, scaling, ecosystem growth, usability, and interoperability. Its work is designed to prepare Ethereum for the next wave of institutional, DeFi, and agentic finance adoption while reinforcing the network's credible neutrality, security, and resilience.

Speaker #2: Second, Ethereum Institutional serves as the dedicated institutional front door and help desk to the Ethereum ecosystem. Assisting banks, asset managers, custodians, and market infrastructure providers move from evaluation to deployment.

Speaker #2: The organization has built more than 500 institutional relationships and convened over 150 senior executives, representing approximately $250 trillion in combined assets. Third, ETH Systems is an engineering and research company founded by the team behind the Ethereum Foundation's Institutional Privacy Task Force.

Joseph Chalom: Third, EthSystems is an engineering and research company founded by the team behind the Ethereum Foundation's Institutional Privacy Task Force. It is building privacy and compliance infrastructure that enables banks, asset managers, and other regulated institutions to transact on Ethereum at scale without exposing sensitive information such as trade details or client identity. Together, these organizations serve as three coordinated accelerants of adoption for protocol scalability, institutional engagement, and privacy for regulated financial activity. I am pleased to serve on the board of Ethereum Institutional, where my experience across asset management and financial market infrastructure can help traditional organizations understand how Ethereum is uniquely suited to fit their business needs. We believe stronger protocol, institutional participation, and privacy infrastructure can accelerate Ethereum adoption and strengthen the ecosystem underlying empowered by the ETH on our balance sheet.

Speaker #2: It is building privacy and compliance infrastructure that enables banks, asset managers, and other regulated institutions to transact on Ethereum at scale, without exposing sensitive information such as trade details or client identity.

Speaker #2: Together, these organizations serve as three coordinated accelerants of adoption, for protocol scalability, institutional engagement, and privacy for regulated financial activity. I am pleased to serve on the board of Ethereum Institutional where my experience across asset management and financial market infrastructure can help traditional organizations understand how Ethereum is uniquely suited to fit their business needs.

Speaker #2: We believe stronger protocols, institutional participation, and privacy infrastructure can accelerate Ethereum adoption and strengthen the ecosystem, underpinned by the ETH on our balance sheet.

Speaker #2: The growing market engagement around these initiatives reinforces our conviction that investors are increasingly recognizing Ethereum's institutional opportunity. The opportunity set is expanding alongside Ethereum itself.

Joseph Chalom: The growing market engagement around these initiatives reinforces our conviction that investors are increasingly recognizing Ethereum's institutional opportunity. The opportunity set is expanding alongside Ethereum itself. The network has the deepest developer base in the blockchain sector and hosts more than half of global stablecoin supply, the majority of tokenized real-world assets, and approximately 62% of DeFi total value locked. That depth of activity creates liquidity, resilience, and an innovation base that is difficult to replicate. One of the most important emerging categories is agentic finance. As AI agents increasingly make purchases, manage financial positions, and transact with other agents, they will require programmable money, verifiable identities, enforceable rules, and permissionless settlement infrastructures. Early indicators are already meaningful. Based on the last 30 days, Coinbase's x402 protocol is showing a run rate of approximately 225 million payment transactions across tens of thousands of active agents.

Speaker #2: The network has the deepest developer base in the blockchain sector and hosts more than half of the global stablecoin supply. It also has the majority of tokenized real-world assets and approximately 62% of DeFi total value locked.

Speaker #2: That depth of activity creates liquidity, resilience, and an innovation base that is difficult to replicate. One of the most important emerging categories is agentic finance.

Speaker #2: As AI agents increasingly make purchases, managed financial positions and transact with other agents they will require programmable money verifiable identities enforceable rules and permissionless settlement infrastructures.

Speaker #2: Early indicators are already meaningful. Based on the last 30 days, Coinbase's X402 protocol is showing a run rate of approximately 225 million payment transactions across tens of thousands of active agents.

Speaker #2: While still early, this activity demonstrates that autonomous software agents are beginning to participate directly in economic activity and should increase demand for stablecoins, collateral, smart contract execution, and secure verifiable settlement.

Joseph Chalom: While still early, this activity demonstrates that autonomous software agents are beginning to participate directly in economic activity and should increase demand for stablecoins, collateral, smart contract execution, and secure verifiable settlement. In summary, we have built scale, and now we are putting that scale to work. We are allocating capital dynamically, combining foundational staking with selective active return strategies. We are supporting infrastructure that strengthens Ethereum and evaluating additional ways to use our operating platform to generate long-term shareholder value. We are relentlessly focused on our North Star, compound ETH per share, and net ETH earned over time through disciplined capital allocation, productive treasury management, and rigorous risk controls. We have also taken a proactive strategic role in telling the Ethereum story alongside a broader community of stakeholders, and we believe that work has helped turn the tide on how the market perceives the Ethereum opportunity.

Speaker #2: In summary, we have built scale, and now we are putting that scale to work. We are allocating capital dynamically, combining foundational staking with selective active return strategies.

Speaker #2: We are supporting infrastructure that strengthens Ethereum and evaluating additional ways to use our operating platform to generate long-term shareholder value. We are relentlessly focused on our North Star—compounding ETH per share and net ETH earned over time—through disciplined capital allocation, productive treasury management, and rigorous risk controls.

Speaker #2: We have also taken a proactive strategic role in telling the Ethereum story alongside a broader community of stakeholders and we believe that work has helped turn the tide on how the market perceives the Ethereum opportunity.

Speaker #2: We intend to keep showing up, not just as one of Ethereum's largest holders, but as one of the most active champions. With that, I'll turn to call over to our Chief Financial Officer, Bob DeLucia, to review our second quarter financial results.

Joseph Chalom: We intend to keep showing up, not just as one of Ethereum's largest holders, but as one of the most active champions. With that, I'll turn the call over to our Chief Financial Officer, Bob DeLucia, to review our Q2 financial results. Bob?

Speaker #2: Bob?

Speaker #3: Thank you, Joseph. I'll begin by encouraging everyone to review our quarterly report on Form 10-Q for the period ended June 30th, 2026, which we filed on Friday, August 7th, 2026, with the SEC.

Robert DeLucia: Thank you, Joseph. I'll begin by encouraging everyone to review our quarterly report on Form 10-Q for the period ending 30 June 2026, which we filed on Friday, 7 August 2026, with the SEC. The 10-Q provides detailed disclosures and footnotes that complement today's discussions, offering stockholders, analysts, and investors a comprehensive view of SharpLink's financial position, liquidity, and its ETH Treasury performance. We will now go through the financial results for the quarter ending 30 June 2026. I'd like to remind everyone that all comparisons and variance commentary refer to the prior year quarter unless otherwise specified. As of 30 June 2026, SharpLink held 632,784 native ETH with a net fair value of $989 million. In addition, we held 162,083 of LSEs, or liquid staked ETH, and 66,267 of wETH or Wrapped Ether five ETH with a combined net cost value of $369.2 million.

Bob DeLucia: Thank you, Joseph. I'll begin by encouraging everyone to review our quarterly report on Form 10-Q for the period ending 30 June 2026, which we filed on Friday, 7 August 2026, with the SEC. The 10-Q provides detailed disclosures and footnotes that complement today's discussions, offering stockholders, analysts, and investors a comprehensive view of SharpLink's financial position, liquidity, and its ETH Treasury performance. We will now go through the financial results for the quarter ending 30 June 2026. I'd like to remind everyone that all comparisons and variance commentary refer to the prior year quarter unless otherwise specified. As of 30 June 2026, SharpLink held 632,784 native ETH with a net fair value of $989 million. In addition, we held 162,083 of LSEs, or liquid staked ETH, and 66,267 of wETH or Wrapped Ether five ETH with a combined net cost value of $369.2 million.

Speaker #3: The 10-Q provides detailed disclosures and footnotes to complement today's discussions offering stockholders, analysts, and investors a comprehensive view of SharpLink's financial position, liquidity, and its ETH treasury performance.

Speaker #3: We will now go through the financial results for the quarter ended June 30, 2026. I'd like to remind everyone that all comparisons and variance commentary refer to the prior year quarter, unless otherwise specified.

Speaker #3: As of June 30th, 2026, SharpLink held $632,784 native ETH with a net fair value of $989 million. In addition, we held $162,083 of LSEs or liquid staked ETH and $66,267 of WEEs or wrapped Etherfi ETH with a combined net cost value of $369.2 million.

Speaker #3: Subsequent to quarter end, our combined ETH holdings have increased to 634,255 native ETH, 181,748 as-if-redeemed LSEs, and 72,935 as-if-redeemed WEEs, for a total of 888,938 ETH as of Monday, August 3, 2026.

Robert DeLucia: Subsequent to quarter end, our combined ETH holdings have increased to 634,255 native ETH, 181,748 as-if-redeemed LSEs, and 72,935 as-if-redeemed wETHs for a total of 888,938 ETH as of Monday, 3 August 2026. Total revenue for the quarter ending 30 June 2026 was $11.5 million, compared with $0.7 million for the quarter ending 30 June 2025. The increase was driven by our staking and ETH yield-generating strategies. We recorded a net realized gain of $1.4 million, compared with a $5.4 million realized gain in the prior year quarter. The gain in the current quarter was due to the derecognition of LSEs. We also recorded an unrealized loss of $321 million, compared with a $2.4 million unrealized loss in Q2 of 2025. We also recorded an impairment charge of $76.1 million, compared with an $87.8 million charge in the prior year quarter.

Bob DeLucia: Subsequent to quarter end, our combined ETH holdings have increased to 634,255 native ETH, 181,748 as-if-redeemed LSEs, and 72,935 as-if-redeemed wETHs for a total of 888,938 ETH as of Monday, 3 August 2026. Total revenue for the quarter ending 30 June 2026 was $11.5 million, compared with $0.7 million for the quarter ending 30 June 2025. The increase was driven by our staking and ETH yield-generating strategies. We recorded a net realized gain of $1.4 million, compared with a $5.4 million realized gain in the prior year quarter. The gain in the current quarter was due to the derecognition of LSEs. We also recorded an unrealized loss of $321 million, compared with a $2.4 million unrealized loss in Q2 of 2025. We also recorded an impairment charge of $76.1 million, compared with an $87.8 million charge in the prior year quarter.

Speaker #3: Total revenue for the quarter ended June 30th, 2026 was $11.5 million, compared with 0.7 million for the quarter ended June 30th, 2025. The increase was driven by our staking and ETH yield generating strategies.

Speaker #3: We recorded a net realized gain of $1.4 million, compared with a $5.4 million realized gain in the prior year quarter. The gain in the current quarter was due to the de-recognition of LSEs.

Speaker #3: We also recorded an unrealized loss of $321 million compared with a 2.4 million unrealized loss in Q2 of 2025. We also recorded an impairment charge of $76.1 million compared with a $87.8 million charge in the prior year quarter.

Speaker #3: SG&A expenses in the second quarter were $9.1 million, compared with $2.4 million in the prior year quarter. The increase reflects our ETH treasury strategy operating for a full quarter and 2026 versus only a partial period following its launch in early June 2025.

Robert DeLucia: SG&A expenses in the second quarter were $9.1 million, compared with $2.4 million in the prior year quarter. The increase reflects our ETH Treasury strategy operating for a full quarter in 2026 versus only a partial period following its launch in early June 2025. The additional expenses included personnel, custody, insurance, legal, accounting, and other public company infrastructure costs. For the second quarter of 2026, we reported a net loss of $394.3 million, compared to a net loss of $103.4 million in the prior year. The Q2 2026 results were driven primarily by the previously discussed unrealized fair value loss of $321 million and an impairment charge of $76.1 million, which was partially offset by the $1.4 million of realized gains. Overall, our second quarter performance reflects the broad decline in crypto asset prices experienced across the market during the quarter.

Bob DeLucia: SG&A expenses in the second quarter were $9.1 million, compared with $2.4 million in the prior year quarter. The increase reflects our ETH Treasury strategy operating for a full quarter in 2026 versus only a partial period following its launch in early June 2025. The additional expenses included personnel, custody, insurance, legal, accounting, and other public company infrastructure costs. For the second quarter of 2026, we reported a net loss of $394.3 million, compared to a net loss of $103.4 million in the prior year. The Q2 2026 results were driven primarily by the previously discussed unrealized fair value loss of $321 million and an impairment charge of $76.1 million, which was partially offset by the $1.4 million of realized gains. Overall, our second quarter performance reflects the broad decline in crypto asset prices experienced across the market during the quarter.

Speaker #3: The additional expenses included personnel, custody, insurance, legal, accounting, and other public company infrastructure costs. For the second quarter of 2026, we reported a net loss of $394.3 million.

Speaker #3: Compared to a net loss of $103.4 million, in the prior year. The Q2 2026 results were given primarily by the previously discussed unrealized fair value loss of $321 million and an impairment charge of $76.1 million which was partially offset by the $1.4 million of realized gains.

Speaker #3: Overall, our second quarter performance reflects the broad decline in crypto asset prices experienced across the market during the quarter. As we've noted previously, the impairment charges and unrealized losses recorded this quarter reflect current market pricing dynamics and the accounting requirements of US GAAP.

Robert DeLucia: As we noted previously, the impairment charges and unrealized losses recorded this quarter reflect current market pricing dynamics and the accounting requirements of U.S. GAAP. These accounting measures do not represent realized economic losses on our ETH position, nor do they impact the number of ETH units we hold. Our Treasury strategy continues to be evaluated on disciplined ETH accumulation and long-term productivity of those assets over time. As of 30 June 2026, cash on hand was $56.2 million, compared to cash on hand of $28.5 million as of 31 December 2025. Between our cash position, our unencumbered ETH holdings, and the flexibility of our capital allocation framework, we believe SharpLink maintains ample liquidity going forward to execute on its strategy across a range of market conditions and opportunities.

Bob DeLucia: As we noted previously, the impairment charges and unrealized losses recorded this quarter reflect current market pricing dynamics and the accounting requirements of U.S. GAAP. These accounting measures do not represent realized economic losses on our ETH position, nor do they impact the number of ETH units we hold. Our Treasury strategy continues to be evaluated on disciplined ETH accumulation and long-term productivity of those assets over time. As of 30 June 2026, cash on hand was $56.2 million, compared to cash on hand of $28.5 million as of 31 December 2025. Between our cash position, our unencumbered ETH holdings, and the flexibility of our capital allocation framework, we believe SharpLink maintains ample liquidity going forward to execute on its strategy across a range of market conditions and opportunities.

Speaker #3: These accounting measures do not represent realized economic losses on our ETH position, nor do they impact the number of ETH units we hold. Our treasury strategy continues to be evaluated on disciplined ETH accumulation and long-term productivity of those assets over time.

Speaker #3: As of June 30th, 2026, cash on hand was $56.2 million, compared to cash on hand of $28.5 million as of December 31st, 2025. Between our cash position, our unencumbered ETH holdings, and the flexibility of our capital allocation framework, we believe SharpLink maintains ample liquidity going forward to execute on its strategy across a range of market conditions and opportunities.

Speaker #3: For additional details, our complete financial statements and accompanying footnotes, including all required disclosures and management's MD&A analysis, are contained in our quarterly report on Form 10-Q for the period ended June 30, 2026, filed with the SEC.

Robert DeLucia: For additional details, our complete financial statements and accompanying footnotes, including all required disclosures and management's MD&A analysis, are contained in our quarterly report on Form 10-Q for the period ending 30 June 2026, filed with the SEC. This concludes our prepared remarks. We will now open it up for questions from those participating on the call. Operator, back to you.

Bob DeLucia: For additional details, our complete financial statements and accompanying footnotes, including all required disclosures and management's MD&A analysis, are contained in our quarterly report on Form 10-Q for the period ending 30 June 2026, filed with the SEC. This concludes our prepared remarks. We will now open it up for questions from those participating on the call. Operator, back to you.

Speaker #3: This concludes our prepared remarks. We will now open it up for questions from those participating on the call. Operator, back to you.

Speaker #2: Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that you please limit yourself to one question and one follow-up question. One moment, please, while we poll for questions. Our first questions come from the line of Devin Ryan with Citizens JMP. Please proceed with your questions.

Speaker #2: A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #2: We ask that you please limit yourself to one question and one follow-up question. One moment, please, while we pull for questions. Our first questions come from the line of Devin Ryan with Citizens Bank.

Speaker #2: Please proceed with your questions.

Speaker #1: Thanks so much. Good morning, Joe, Joseph, and Bob. I want to start with a question on the agentic opportunity. Obviously, we're tracking a lot of activity. I think I just read somewhere that in recent months, the majority of traffic on the internet is now non-human.

Devin Ryan: Thanks so much. Good morning, Joseph, and Bob. I want to start with a question on the agentic opportunity, obviously tracking a lot of activity. I think I just read somewhere where in recent months, the majority of traffic on the internet is now non-human. So AI agents are obviously scaling pretty rapidly, but we are also early days. I would love to just hear a little bit more about how you all see that playing out on blockchain. I know you mentioned stablecoins, we are seeing good activity there, but just the evolution with agents from where we are now. Do they care which chain they use? Why is Ethereum well suited? How much share can Ethereum win? Then just more broadly, what SharpLink is doing to position for that opportunity.

Speaker #1: so AI agents are obviously scaling pretty rapidly. but we're also early days. So I, I'd love to just hear a little bit more about how you all see that playing out on blockchain.

Speaker #1: I know you mentioned, you know, stablecoins were seeing good activity there, but just, kind of the evolution with, agents, from where we are now, do they care which chain they use?

Speaker #1: Why is Ethereum well-suited? You know, how much share can Ethereum win? And then just more broadly, what SharpLink is doing to position, for that opportunity.

Speaker #1: I know ETH Labs is maybe one example, but I'd just love to hear a little bit more about how you're thinking about the opportunity. Thank you.

Devin Ryan: I know ETH Labs is maybe one example, but just love to hear a little bit more about how you are thinking about the opportunity. Thank you.

Speaker #4: good morning, Devin. Great question. It's one, actually, that gets me quite excited. So I want to set the context. Agentic finance and commerce is really about giving individuals and their agents, some people we'll refer to them as digital twins, something that only institutions have ever had before.

Joseph Chalom: Good morning, Devin. Great question. It is one actually that gets me quite excited. I want to set the context. Agentic finance and commerce is really about giving individuals and their agents, some people will refer to them as digital twins, something that only institutions have ever had before. An individual, you could say, in the future is going to have a treasury desk or a CFO in their pocket. For listeners, every large asset manager employs people whose job it is to make sure that no dollar sits in a portfolio idle. Every security is being lent or borrowed to earn yield. Every share gets voted. Most individuals globally have never had access to that. An autonomous agent with the will of an individual is what is going to make that possible.

Speaker #4: An individual you could say in the future is going to have a treasury desk or a CFO in their pocket. And for listeners, every large asset manager employs people whose job it is to make sure that no dollar sits in a portfolio idle, every security is being lent or borrowed to earn yield, every share gets voted.

Speaker #4: And most individuals globally have never had access to that. And so an autonomous agent with the will of, an individual is what's going to make that possible.

Speaker #4: Think of it as always-on, autonomously executing your preferences at basically zero marginal cost with massive scale. And the gap that it's going to close for retail investors is actually enormous.

Joseph Chalom: Think of it as always on, autonomously executing your preferences at basically zero marginal cost with massive scale. The gap that it is going to close for retail investors is actually enormous. American households, the last time we checked, hold around $6 trillion in checking accounts, around $15 trillion if you count savings account. Most of it is earning a fraction of prevailing market rates, that is not a problem with the banks or a product problem. It is actually a labor and intentionality problem. No one is going to manually sweep their cash every night and rebalance their portfolios and lend their stocks. But agents and software can and will. Your second point about why Ethereum, it is really for two reasons. There is an open source protocol called x402.

Speaker #4: American households, the last time we checked, hold around $6 trillion in checking accounts. around $15 trillion if you count savings account. Most of it is earning a fraction of prevailing market rates.

Speaker #4: And that's not a problem with the banks or a product problem. It's actually a labor and intentionality problem. No one's going to manually sweep their cash every night and rebalance their portfolios and lend their stocks but agents and software can and will.

Speaker #4: And your second point about why Ethereum—it's really for two reasons. There's an open-source protocol called X402. You can think of it as a micropayments capability that lets agents pay one another in stablecoins on Ethereum without asking a card network or a proprietary permission network for any permissions.

Joseph Chalom: You can think of it as a micro payments capability that lets agents pay one another in stablecoins on Ethereum without asking a card network or a proprietary permission network for any permissions. That is already crossing hundreds of millions in transactions. On top of that open source micro payments network and protocol, you have Ethereum's ERC-8004. It actually gives agents guide rails and a registry so that they can establish identity and trust with no intermediary sitting in between. Nobody has to convene a consortium to make that happen. It is live, it is shipped, and Ethereum is already leading the agentic finance underlying infrastructure. The second element is, I think, the underrated part. Neutrality is a financial feature, not an ideological one, and not a product defect. Look at who is racing to own these rails.

Speaker #4: And that is already crossing hundreds of millions in transactions. On top of that, open-source micro-payments network and protocol, you have Ethereum's ERC-8004. It actually gives agents guide rails and a registry so that they can establish identity and trust with no intermediary sitting in between.

Speaker #4: Nobody has to convene a consortium to make that happen. It's live. It's shipped. And Ethereum is already leading the agentic finance underlying infrastructure. The second element is, I think, the underrated part.

Speaker #4: Neutrality is a financial feature, not an ideological one, and not a product defect. Look at who's racing to own these rails. Stripe did about $1.9 trillion in payments last year, launched its own online chain.

Joseph Chalom: Stripe did about $1.9 trillion in payments last year, launched its own onchain. Visa, Mastercard, Google, all shipping agent payment standards. These are really good company. But if your rails and your agent are owned by a payments company, they are the ones who are going to decide what yield your product gets swept into, what products they recommend, and will take a fee along the way. Ethereum is the only architecture where no one sits in that seat in between agents and users. It has had a decade of uptime. It has no individual owner or concentrated foundation. Nobody can change the rules underneath you. The way I will put it is, if the rails are proprietary, that agent in your pocket will answer to whoever built it.

Speaker #4: Visa, Mastercard, Google—all shipping agent payment standards. These are really good companies, but if your rails and your agent are owned by a payments company, they're the ones who are going to decide what yield your product gets swept into, what products they recommend, and will take a fee along the way.

Speaker #4: Ethereum is the only architecture where no one sits in that seat in between agents and users. It's had a decade of uptime. It has no individual owner or concentrated foundation.

Speaker #4: Nobody can change the rules underneath you. And so, the way I'll put it is: if the rails are proprietary, that agent in your pocket will answer to whoever built it.

Speaker #4: If they're neutral and Ethereum is the leading chain in terms of, maturity, liquidity, trust, your agents will essentially answer to you. So we believe very strongly the stablecoin layer is dominated on Ethereum and their layer twos.

Joseph Chalom: If they are neutral, and Ethereum is the leading chain in terms of maturity, liquidity, trust, your agents will essentially answer to you. So we believe very strongly the stablecoin layer is dominated on Ethereum and their layer twos, the tokenized asset rails and DeFi, and we believe the agentic layer will just automate that activity largely on SharpLink. Largely on Ethereum.

Speaker #4: The tokenized asset rails and DeFi and we believe the agentic layer will just automate that activity largely on SharpLink.

Speaker #1: Okay.

Speaker #4: Largely on Ethereum.

Speaker #1: Yeah. There yeah, there, there are so many aspects. to agentic activity on decentralized rails, I'll, I'll keep it fairly simple as, as you suggested.

Operator: Yeah.

Joe Lubin: Yeah.

Joseph Lubin: There are so many aspects to agentic activity on decentralized rails. I will keep it fairly simple. As you suggested, autonomous AIs are going to want the best infrastructure that smart companies will choose, and that is a credibly neutral guarantee to execute, risk minimized. That is Ethereum. It can be Layer 2s on Ethereum that does not inherit the security guarantees of Layer 1 on Ethereum. If you think about DeFi, in a sense, blockchain and DeFi were not made for the bulk of humanity to interact with directly. It is similar to the evolution of the automobile. It is a complex machine, mechanical and electronic, and it has been perfected by engineers so that with the use of automated transmission and even full self-driving, people are able to wield this incredibly complex and even dangerous technology relatively effortlessly.

Joe Lubin: There are so many aspects to agentic activity on decentralized rails. I will keep it fairly simple. As you suggested, autonomous AIs are going to want the best infrastructure that smart companies will choose, and that is a credibly neutral guarantee to execute, risk minimized. That is Ethereum. It can be Layer 2s on Ethereum that does not inherit the security guarantees of Layer 1 on Ethereum. If you think about DeFi, in a sense, blockchain and DeFi were not made for the bulk of humanity to interact with directly. It is similar to the evolution of the automobile. It is a complex machine, mechanical and electronic, and it has been perfected by engineers so that with the use of automated transmission and even full self-driving, people are able to wield this incredibly complex and even dangerous technology relatively effortlessly.

Speaker #1: autonomous AIs are, are going to want the best infrastructure. infrastructure that, that smart companies will choose. And that's, incredibly neutral, guaranteed to execute, risk minimized.

Speaker #1: and so that is Ethereum, can be layer twos on Ethereum that, that inherit, the security guarantees of, of layer one on Ethereum. if you think about, DeFi, in a sense, blockchain and DeFi, we're not made for the bulk of humanity to interact with directly.

Speaker #1: sort of similar to, the evolution of the automobile. so it's complex machine, mechanical and electronic, and, it has been perfected by engineers so that, with the use of automated transmission and, in full self-driving even, people are able to, wield this incredibly complex and, and even dangerous technology, relatively effortlessly.

Speaker #1: and so you can imagine that, that the engineers researchers of, of Ethereum, and DeFi systems, are putting together essentially the automated transmission and the full self-driving of, of finance, and, you'll see that, as agents handle all the heavy lifting and all the, automated activities that make sure that, that your money, is always, working for you and is safe.

Joseph Lubin: You can imagine that the engineers, researchers of Ethereum and DeFi systems are putting together essentially the automated transmission and the full self-driving of finance. You will see that as agents handle all the heavy lifting and all the automated activities that make sure that your money is always working for you and is safe. In particular, my favorite wallet, MetaMask, has a system that does exactly that.

Joe Lubin: You can imagine that the engineers, researchers of Ethereum and DeFi systems are putting together essentially the automated transmission and the full self-driving of finance. You will see that as agents handle all the heavy lifting and all the automated activities that make sure that your money is always working for you and is safe. In particular, my favorite wallet, MetaMask, has a system that does exactly that.

Speaker #1: in particular, my, my favorite wallet, MetaMask, has, a system that does exactly that.

Speaker #2: Really fascinating. I appreciate the responses, Joseph and Joe. A follow-up here to maybe look at the big picture — we're a little bit over a year into the Treasury strategy.

Devin Ryan: Really fascinating. Appreciate the responses, Joseph and Joe. A follow-up here, kind of maybe say big picture, a little bit over a year into the treasury strategy, so maybe a good time to revisit kind of big picture on why treasury versus passive ownership. I think it has obviously been a volatile backdrop for prices, and I think that can obscure kind of the value sometimes, at least optically, from the value created by active management. So would love to hear in your words, kind of how you would frame SharpLink's treasury performance relative to passive ETH ownership as an alternative. Then just looking ahead, I suspect maybe one of the silver linings to a difficult price backdrop is just there is less capital chasing opportunities.

Speaker #2: So maybe good time to revisit kind of big picture on, on why Treasury versus passive ownership. And I think, you know, it's obviously been a, a volatile backdrop for prices.

Speaker #2: And I think that can obscure kind of the value, sometimes, at least optically from the value created by active management. So, would, would love to hear in, in your words kind of how you would frame SharpLink's Treasury performance relative to, passive ETH ownership as an alternative.

Speaker #2: And then just looking ahead, I suspect maybe one of the silver linings to a difficult price backdrop is just there's less capital chasing opportunities.

Speaker #2: and so if you can just maybe add some context on maybe how much incremental yield do you think you've kind of, you know, stacked for the future, if you will, or just been able to kind of, negotiate ahead of, you know, the, the next phase of the adoption cycle.

Devin Ryan: If you can just maybe add some context on maybe how much incremental yield you think you have kind of stacked for the future, if you will, or just been able to kind of negotiate ahead of the next phase of the adoption cycle. Obviously, we see all these partnerships, and so it seems like the terms you are probably getting today would be better than when things were really hot from a price perspective. So would love some context there. Thank you.

Speaker #2: Obviously, you know, we see all these partnerships. And so it seems like, the firms you're probably getting today would be, better than, when, things were really hot from a price perspective.

Speaker #2: So, love some context there. Thank you.

Speaker #4: Sure. So, Devin, owning SharpLink instead of simply buying ETH in the spot market or an ETF is kind of a fundamental investment question. Owning ETH directly provides exposure to the asset and our objective is actually to provide exposure to both the asset and additional value we can create uniquely through disciplined institutional capital allocation.

Joseph Chalom: Sure. So Devin, owning SharpLink instead of simply buying ETH in the spot market or an ETF is kind of a fundamental investment question. Owning ETH directly provides exposure to the asset, and our objective is actually to provide exposure to both the asset and additional value we can create uniquely through disciplined institutional capital allocation. We believe that we can create value beyond just passive ownership through three basic capabilities that, when combined, are compounding. The first is just disciplined capital allocation. We raise capital when attractive, we can repurchase shares when appropriate, and we are continuously evaluating how to maximize ETH per share. Second is our treasury management is productive. Rather than simply holding ETH or staking part of it, we are actively putting our treasury to work through both staking and carefully selected institutional strategies that take advantage of, frankly, our comparative advantage, which is having permanent capital.

Speaker #4: we believe, that we can create value beyond just passive ownership through three basic capabilities that when combined are compounding. The first is just disciplined capital allocation.

Joseph Chalom: The first is just disciplined capital allocation. We raise capital when attractive, we can repurchase shares when appropriate, and we are continuously evaluating how to maximize ETH per share. Second is our treasury management is productive. Rather than simply holding ETH or staking part of it, we are actively putting our treasury to work through both staking and carefully selected institutional strategies that take advantage of, frankly, our comparative advantage, which is having permanent capital.

Speaker #4: We raise capital when attractive. We can repurchase shares when appropriate. And we are continuously evaluating how to maximize ETH per share. Second is our Treasury management is productive.

Speaker #4: Rather than simply holding ETH, or staking part of it, we're actively putting our Treasury to work through both staking and carefully selected institutional strategies that take advantage of, frankly, our comparative advantage, which is having permanent capital.

Speaker #4: Many funds and ETFs cannot do that. They have to provide daily liquidity. They cannot do virtually anything beyond staking. And our goal is to earn incremental ETH over time in a way that, an ETF cannot.

Joseph Chalom: Many funds and ETFs cannot do that. They have to provide daily liquidity. They cannot do virtually anything beyond staking. Our goal is to earn incremental ETH over time in a way that an ETF cannot, or most users holding spot cannot either. Third is we provide access to ecosystem participation. We are helping build the infrastructure that we believe will accelerate Ethereum's long-term adoption while having access to differentiated investment opportunities for our shareholders. I really want to emphasize that. The deal flow that is coming to us is tremendous. I think in the last several quarters, we saw over 100 opportunities. We diligenced only about 12 of them, and you have seen the deployments we are making. So if we execute well, and we are doing it in a very disciplined fashion, investors are not simply buying ETH exposure.

Speaker #4: Or most users holding spot cannot either. And third is we provide access to ecosystem participation. We are helping build the infrastructure that we believe will accelerate Ethereum's long-term adoption, while having access to differentiated investment opportunities for our shareholders.

Speaker #4: And I really want to emphasize that the deal flow that is coming to us is tremendous. I think in the last several quarters, we saw over 100 opportunities.

Speaker #4: We diligenced only about 12 of them, and you've seen the deployments we're making. So if we execute well—and we're doing it in a very disciplined fashion—investors aren't simply buying ETH exposure.

Speaker #4: They're investing in a company that has a mission to compound that value through active, institutional-grade management. So, I think it is highly differentiated. You will see over time that our competitive advantage of scale, liquidity, a public wrapper, and permanent capital will actually give us opportunities—not to chase yield, but essentially to be rewarded for deploying in the long run and for the long term.

Joseph Chalom: They are investing in a company who has a mission to compound that value through active institutional-grade management. I think it is highly differentiated, and you will see over time that our competitive advantage of scale, liquidity, a public wrapper, and permanent capital will actually give us opportunities not to chase yield, but essentially to be rewarded for deploying in the long run and for long term. So Devin, thanks for those questions.

Speaker #4: So, Devin, thanks for those questions.

Speaker #2: Thank you, Joseph.

Devin Ryan: Thank you, Joseph.

Speaker #3: Thank you. Our next questions come from the line of Fedor Chavelin with B. Riley Securities. Please proceed with your questions.

Operator: Thank you. Our next questions come from the line of Fedor Shabalin with B. Riley Securities. Please proceed with your questions.

Speaker #5: Thank you very much, operator, and good morning, everyone. Mike, it was a great, great discussion. from Devin, and your answers. But my, my question is less like, like I said, said more granular, least strategic, first one is on the 125 million fund, with, with Galaxy.

Operator: Thank you very much, operator, and good morning, everyone. Mike, it was a great discussion from Darren and your answers, but my question's less, like you said, Fed, more granular, less strategic. First one is on the 125 million fund with Galaxy. Do you have a mini target return profile and risk budget? Maybe split between DeFi lending and liquid staking yield versus more structured exposure? How does capital in the fund interact with the core Ethereum treasury? Is this being redeployed out of existing ETH holdings or funded somehow separately? Thank you very much.

Fedor Shabalin: Thank you very much, operator, and good morning, everyone. Mike, it was a great discussion from Darren and your answers, but my question's less, like you said, Fed, more granular, less strategic. First one is on the 125 million fund with Galaxy. Do you have a mini target return profile and risk budget? Maybe split between DeFi lending and liquid staking yield versus more structured exposure? How does capital in the fund interact with the core Ethereum treasury? Is this being redeployed out of existing ETH holdings or funded somehow separately? Thank you very much.

Speaker #5: do you have a, like, a many target return profile and risk budget? maybe split between DeFi lending and liquid staking yield versus more structured, exposure.

Speaker #5: And, how does capital in the fund interact with the core Ethereum Treasury? Is this being redeployed out of existing ETH holdings, or is it funded separately?

Speaker #5: Thank you very much.

Speaker #4: Fedor, great question. So we aren't going to actively disclose yield guidance. you can think of it as our success in this fund as another sleeve in a portfolio is going to be measured by long-term risk-adjusted incremental ETH earned above the native staking rate.

Joseph Chalom: Fedor, great question. We aren't going to actively disclose yield guidance. You can think of it as our success in this fund as another sleeve in a portfolio is going to be measured by long-term risk-adjusted incremental ETH earned above the native staking rate. Again, incremental ETH returns above the native staking rate. We are capitalizing the fund with ETH, so we are continuing to get staking rewards on the ETH we deploy. The fund will borrow against that to do deployments. I believe most of the deployments are going to be on-chain, highly collateralized yield opportunities. I don't believe this is going to be another sleeve of liquid staking or restaking. We're going to commit to support the cold start problem we've talked about in the past, which is new protocols needing to have a solid base of capital on which they can attract additional capital.

Speaker #4: So, again, incremental ETH returns above the native staking rate. We are capitalizing the fund with ETH, so we are continuing to get staking rewards on the ETH we deploy.

Speaker #4: And the fund will borrow against that to do deployments. I believe most of the deployments are going to be on-chain, highly collateralized yield opportunities.

Speaker #4: I don't believe the op this is going to be another sleeve of liquid staking or restaking. We're going to commit to support the cold start problem.

Speaker #4: We've talked about in the past, which is new protocols, needing to have a solid base of capital, on which they can attract additional capital and if you do that right, you will end up, getting better returns for your investors, while still staying directionally exposed to ETH.

Joseph Chalom: If you do that right, you will end up getting better returns for your investors while still staying directionally exposed to ETH. We chose Galaxy in this format because they have capabilities to do even greater sourcing at scale, diligence at a level that, as a public company with years of experience, very few institutions have. Importantly, a risk management framework that we've agreed with them to continue to monitor these investments and to adjust them in real time as needed. We can do these deployments one, two, three at a time. They're going to do this deployment in much more scale. For the day-to-day management of our portfolio, the strategic allocations, we've built the strongest in-house team and capability. For specialized deployments and scale, we'll benefit from the value and the partnership with Galaxy.

Speaker #4: We chose Galaxy in this format because they have capabilities to do even greater sourcing at scale, and diligence at a level that, as a public company with years of experience, very few institutions have.

Speaker #4: And importantly, a risk management framework that we've agreed with them to continue to monitor these investments and to adjust them in real time as needed.

Speaker #4: We can do these deployments one, two, three at a time. They're going to do this deployment at much greater scale. So, for the day-to-day management of our portfolio and the strategic allocations, we've built the strongest in-house team and capability.

Speaker #4: But for specialized deployments at scale, we’ll benefit from the value and the partnership with Galaxy. So again, we’re not providing yield guidance, but we are seeking to outperform the long-term incremental ETH we can earn above the native Caesar staking rate.

Joseph Chalom: So again, we are not providing yield guidance, but we are seeking to outperform the long-term incremental ETH we can earn above the native fees or staking rate.

Speaker #5: Thank you very much for this. And my follow-up is, if you can talk a little bit more in detail about funding to ETH Labs, Ethereum Institutional, and IF Systems, and the expected duration of this.

Joseph Chalom: Thank you very much for this. My follow-up is, if you can talk a little bit more in details about funding to ETH Labs, Ethereum Institutional, and EthSystems, and an expected duration of this. Is this a short-term granting or ongoing annual commitment? Does it come out of Treasury ETH or cash, and what would be expected call it payback for SharpLink shareholders specifically? Is the thesis that this drives broad ETH price appreciation, which every ETH holder benefits from, or does SharpLink get differentiated commercial access, maybe early access to institutional flow through ETH additional relationship or privacy infrastructure from EthSystems? So that other ETH treasury vehicles do not get. Thank you.

Fedor Shabalin: Thank you very much for this. My follow-up is, if you can talk a little bit more in details about funding to ETH Labs, Ethereum Institutional, and EthSystems, and an expected duration of this. Is this a short-term granting or ongoing annual commitment? Does it come out of Treasury ETH or cash, and what would be expected call it payback for SharpLink shareholders specifically? Is the thesis that this drives broad ETH price appreciation, which every ETH holder benefits from, or does SharpLink get differentiated commercial access, maybe early access to institutional flow through ETH additional relationship or privacy infrastructure from EthSystems? So that other ETH treasury vehicles do not get. Thank you.

Speaker #5: Is this kind of a short-term granting or ongoing annual commitment? and doesn't come out of Treasury ETH or cash, and, and what would be expected?

Speaker #5: call it payback for, for as bad shareholders specifically. Is this thesis that this drives broad ETH price appreciation, which every ETH holder benefits from?

Speaker #5: Or does Sharplink get kind of differentiated commercial access—maybe early access to institutional flow if there's an institutional relationship, or maybe some sort of privacy infrastructure from the ETH system?

Speaker #5: So, that kind of other—if Treasury vehicles don't get. Thank you.

Speaker #4: Sure. I think you should think of these as a very, very intentional and strategic, allocation. they're intended to strengthen the overall infrastructure that supports our thesis, which is long-term Ethereum adoption by the world's largest institutions.

Joseph Chalom: Sure. I think you should think of these as a very intentional and strategic allocation. They are intended to strengthen the overall infrastructure that supports our thesis, which is long-term Ethereum adoption by the world's largest institutions. These institutions who have spun off from the Ethereum Foundation needed longer-term funding, and we are supporting them not through charity or philanthropy. We are making one, two multi-year funding commitments alongside the ecosystem, including Joseph Lubin personally, Tom Lee at Bitmine, and in some of the cases, over 100 distinct anchor and additional supporters. They are fully economically aligned with what our shareholders expect, because a stronger Ethereum ecosystem and narrative and storytelling and infrastructure can enhance long-term utility and the value proposition of ETH. Again, this is a strategic support investment, not philanthropy. Our treasury strategy continues to remain focused on increasing ETH per share.

Speaker #4: These institutions who've spun off from the Ethereum Foundation needed longer-term funding. And we're supporting them not through charity or philanthropy—we're making one- and two-year, multi-year funding commitments alongside the ecosystem, including Joe Lubin personally, Tom Lee at Bitmine, and in some cases, over 100 distinct anchor and additional supporters.

Speaker #4: And they are fully economically aligned with what our shareholders expect, because a stronger Ethereum ecosystem, narrative, storytelling, and infrastructure can enhance long-term utility and the value proposition of ETH.

Speaker #4: Again, this is a strategic support investment, not philanthropy. Our Treasury strategy continues to remain focused on increasing ETH per share. These ecosystem investments are a complementary way to help accelerate adoption and the drivers that underpin our entire strategy.

Joseph Chalom: These ecosystem investments are a complementary way to help accelerate that adoption and the drivers that underpin our entire strategy. They do not provide us with any unique capability, profit sharing. They are meant to be run as independent, neutral companies. That is the beauty and the benefit of Ethereum. We are not controllers of these companies. That said, we will have voices along with other ecosystem participants, and their objectives are going to be public, they are going to be open source, and they are going to be fully auditable. So we will have much more visibility into what they are doing, but also opportunities that spin out from these institutional adoption capabilities, and it will be very accretive, we believe, in the long run for our shareholders. You have already seen the sentiment shift from earlier this summer around Ethereum Foundation, some of the subtraction they were doing by getting more focused.

Speaker #4: They don't provide us with any unique capability or profit sharing. They're meant to be run as independent, neutral companies. That is the beauty and the benefit of Ethereum.

Speaker #4: We are not controllers of these companies. That said, we'll have voices along with other ecosystem participants, and their objectives are going to be public, they're going to be open source, and they're going to be fully auditable.

Joseph Chalom: We are not controllers of these companies. That said, we will have voices along with other ecosystem participants, and their objectives are going to be public, they are going to be open source, and they are going to be fully auditable. So we will have much more visibility into what they are doing, but also opportunities that spin out from these institutional adoption capabilities, and it will be very accretive, we believe, in the long run for our shareholders. You have already seen the sentiment shift from earlier this summer around Ethereum Foundation, some of the subtraction they were doing by getting more focused.

Speaker #4: And so we'll have much more visibility into what they're doing, but also opportunities that spin out from these institutional adoption capabilities. And it'll be very accretive, we believe, in the long run for our shareholders.

Speaker #4: You've already seen the sentiment shift from earlier this summer around Ethereum Foundation, some of, the subtraction they were doing by getting more focused. And you've seen the Ethereum narrative and actual token price of Ether, decouple and outperform, at almost exactly the same time that the ecosystem was doubling down into these spin-offs.

Joseph Chalom: You have seen the Ethereum narrative, and actual token price of Ether decouple and outperform at almost exactly the same time that the ecosystem was doubling down into these spinoffs. We think it is really good for shareholders. It has been good for the price of ETH, and we are incredibly supportive as institutional stewards, but not controllers of these organizations.

Speaker #4: So we think it's really good for shareholders, it's been good for the price of ETH, and, we are incredibly supportive as institutional stewards, but not controllers of these organizations.

Speaker #5: Thank you very much.

Joseph Chalom: Thank you very much.

Fedor Shabalin: Thank you very much.

Speaker #2: One way to think about one way to think about the investment that Sharpline has made, into these organizations is, it's not very large in monetary terms, but it has been, enormously powerful, in terms of the, coordination, the support, that Sharpline personnel have provided.

Joseph Lubin: One way to think about the investment that SharpLink has made into these organizations is, it is not very large in monetary terms, but it has been enormously powerful, in terms of the coordination, the support that SharpLink personnel have provided and the role of catalyst in decentralizing the stewardship of the Ethereum ecosystem into multiple credible, neutral and other stewards. A lot of hard work went into it. The gains have, as Joseph indicated, already been quite large in terms of sentiment, but tremendous efficiency of investment, from my perspective.

Joe Lubin: One way to think about the investment that SharpLink has made into these organizations is, it is not very large in monetary terms, but it has been enormously powerful, in terms of the coordination, the support that SharpLink personnel have provided and the role of catalyst in decentralizing the stewardship of the Ethereum ecosystem into multiple credible, neutral and other stewards. A lot of hard work went into it. The gains have, as Joseph indicated, already been quite large in terms of sentiment, but tremendous efficiency of investment, from my perspective.

Speaker #2: And, the role of Catalyst in decentralizing the stewardship of, of the Ethereum ecosystem into multiple credibly neutral and, and other stewards. so a lot of, a lot of hard work went into it.

Speaker #2: and, the gains, have, as Joseph indicated, already been quite large in, in terms of sentiment, but, tremendous, efficiency of investment. My perspective.

Speaker #5: Thank you very much for all the color, and continue best of luck.

Joseph Lubin: Thank you very much for the call and continue. Best of luck.

Fedor Shabalin: Thank you very much for the call and continue. Best of luck.

Speaker #1: Thank you. Our next question comes from the line of Lance Fitanza with TD Cowen. Please proceed with your questions.

Operator: Thank you. Our next question has come from the line of Lance Vitanza with TD Cowen. Please proceed with your questions.

Speaker #3: Thank you. Joseph, there's a narrative out there that says we won't see meaningful institutional adoption until the yet. You've highlighted significant institutional adoption and ecosystem progress over the past several quarters.

Lance Vitanza: Thank you. Joseph, there's a narrative out there that says we won't see meaningful institutional adoption until the Digital Asset Market Clarity Act is passed. Yet you've highlighted significant institutional adoption and ecosystem progress over the past several quarters. To what extent do you think that we are currently constrained by regulation? I guess, in other words, do you think Ethereum adoption could occur even faster under a comprehensive legislative framework, including Clarity Act? How dependent is further adoption on congressional action versus steps that can be taken through SEC rulemaking and other executive branch initiatives?

Speaker #3: To what extent do you think that we are currently constrained by regulation? I guess, in other words, do you think Ethereum adoption could occur even faster under a comprehensive legislative framework, including the Clarity Act?

Speaker #3: And how dependent is further adoption on congressional action, versus steps that can be taken through SEC rulemaking and other executive branch initiatives?

Speaker #4: Thanks, Lance. Great question. I get asked this one a lot. I think the train has left the station. The largest institutions in the world, including the one I worked with for 20 years, are now well beyond educating themselves, experimenting, and doing proof of concepts.

Joseph Chalom: Thanks, Lance. Great question. I get asked this one a lot. I think the train has left the station. The largest institutions in the world, including the one I worked with for 20 years, are now well beyond educating themselves, experimenting, and doing proof of concepts. You're seeing a bit of FOMO, in terms of building and launching products on the public blockchain. Stablecoin adoption is getting massive competition and attention. Right now it's dominated by two or three players, but you're seeing new entrants on a regular basis, and these elements will compound upon itself. Stablecoins as the money layer, DeFi or on-chain activity you can think of as an execution layer. Tokenization is the one I'm actually most excited about because I think it's in the earliest stages and the TAM for tokenization is massive.

Speaker #4: You're seeing a bit of FOMO in terms of building and launching products on the public blockchain. Stablecoin adoption is getting massive competition and attention.

Speaker #4: Right now, it's dominated by two or three players, but you're seeing new entrants on a regular basis. And these elements will compound upon themselves.

Speaker #4: So, stablecoins as the money layer, DeFi or on-chain activity you can think of as an execution layer, and tokenization is the one I'm actually most excited about because I think it's in the earliest stages, and the TAM for tokenization is massive.

Speaker #4: And so, just to give you a sense, there’s around $30 billion of tokenized assets today, largely in the Treasury and yield space, some in commodities, and increasingly in public equities.

Joseph Chalom: Just to give you a sense, there's around $30 billion of tokenized assets today, largely in the treasury and yield space, some in commodities and increasingly in public equities. I think we're going to see that go from tens of billions to hundreds of billions and trillions. Just think about the recent announcements. For many, many years, institutions were launching new de novo funds from scratch with zero assets on chain. Now you're seeing the world's largest institutions tokenize existing multibillion-dollar assets. BlackRock announced the tokenization of two existing money market funds, which I think have $67 billion in place. You saw Franklin Templeton tokenize five ETFs existing assets at once, on Ondo. You've seen Robinhood launch their own chain on an Ethereum Layer 2, which is seeing massive amounts of volume. I think the train has left the station.

Speaker #4: I think we're going to see that go from tens of billions to hundreds of billions and trillions. Just think about the recent announcements. For many, many years, institutions were launching new de novo funds from scratch, with zero assets, on-chain.

Speaker #4: Now you're seeing the world's largest institutions tokenize existing multi-billion dollar assets. BlackRock announced the tokenization of two existing money market funds, which I think have six to seven billion dollars in place.

Speaker #4: You saw Franklin Templeton tokenize five ETFs—existing assets—at once. On Ondo, you've seen Robinhood launch their own chain on an Ethereum Layer 2, which is seeing massive amounts of volume.

Speaker #4: So, I think the train has left the station. There's no question at this point: Ethereum is a commodity. There's less question about what traditional tokenized assets will be in securities format.

Joseph Chalom: There's no question at this point Ethereum is a commodity. There's less question about what traditional tokenized assets will be in securities format. I think what the Clarity Act does is it will enshrine the regulatory sentiment and posture in a way that will survive beyond four-year cycles. When I say four-year cycles, I mean presidential election cycles. We are hopeful that in September there will be a vote. I think if there's not a vote, it might go a little bit slower, but I'm very convinced that the rule makers at the SEC and the CFTC already have a playbook ready to execute in unison to enshrine this in rulemaking. I think the institutional super cycle, the benefits of what is coming 24/7 trading, programmability, additional liquidity, composability of assets for both institutions and retail.

Speaker #4: I think what the Clarity Act does is it will enshrine the regulatory sentiment and posture in a way that will survive beyond four-year cycles.

Speaker #4: And when I say four-year cycles, I mean presidential election cycles. We are hopeful that in September there will be a vote. I think if there's not a vote, it might go a little bit slower. But I am very convinced that the rulemakers at the SEC and the CFTC already have a playbook ready to execute in unison, to enshrine this in rulemaking.

Speaker #4: So I think the institutional supercycle and the benefits of what is coming—24/7 trading, programmability, additional liquidity, composability of assets for both institutions and retail, great technological advancements—aren't stopping.

Joseph Chalom: Great technological advancements aren't stopped, and we see this as a super cycle that will be lasting decades.

Speaker #4: And we see this as a supercycle that will be lasting for decades.

Speaker #5: Is there.

Lance Vitanza: Great, and then my follow-up-

Speaker #3: Great. And then my follow-up.

Speaker #2: The system needs.

Joseph Lubin: What our ecosystem needs-

Joe Lubin: What our ecosystem needs-

Speaker #5: Oh, please.

Lance Vitanza: Oh, please.

Joseph Lubin: What our ecosystem needs to grow from a single-digit trillions industry to a triple digit trillions industry, is regulatory uncertainty. Whether that arrives in legislative form to really lock things in or whether Project Crypto, run by Paul Atkins of the SEC and Mike Selig of the CFTC, is forced to make rules, and enable financial institutions to pile into our ecosystem. It really is not clear to some people which situation would be better. I think, Paul and Mike have been very patient, hoping that legislation would happen, but, if it does not, I think we will get the clarity that we ultimately need.

Joe Lubin: What our ecosystem needs to grow from a single-digit trillions industry to a triple digit trillions industry, is regulatory uncertainty. Whether that arrives in legislative form to really lock things in or whether Project Crypto, run by Paul Atkins of the SEC and Mike Selig of the CFTC, is forced to make rules, and enable financial institutions to pile into our ecosystem. It really is not clear to some people which situation would be better. I think, Paul and Mike have been very patient, hoping that legislation would happen, but, if it does not, I think we will get the clarity that we ultimately need.

Speaker #2: What are ecosystem needs to grow from a single-digit trillions industry to a triple-digit trillions industry? It's regulatory uncertainty. Also, whether that arrives in legislative form to really lock things in, or whether Project Crypto, run by all actants of the SEC and Mike Selig of the CFTC, is forced to make rules.

Speaker #2: and enable financial institutions to pile into our ecosystem. It really—it's not clear to some people which situation would be better. I think Paul and Mike have been very patient, hoping that legislation would happen, but if it doesn't, I think we'll get the clarity that we ultimately need.

Speaker #3: And then just my follow-up, because you both have mentioned Robinhood's launch of its Ethereum-based layer two network. As we think about that development, how should we think about the relationship between layer two adoption and value accrual to ETH itself?

Lance Vitanza: Just my follow-up, because you both have mentioned Robinhood's launch of its Ethereum-based Layer 2 network. As we think about that development, how should we think about the relationship between Layer 2 adoption and value accrual to ETH itself? What are the primary mechanisms through which growing Layer 2 activity ultimately drives demand for ETH?

Speaker #3: And what are the primary mechanisms through which growing layer two activity ultimately drives demand for ETH?

Joseph Chalom: Joe, do you want to take this one?

Speaker #4: Joe, do you want to take this one?

Speaker #2: Sure, happy to. So, Ethereum is a system that offers block space. I mean, it offers the highest quality block space in terms of guaranteed execution, credible neutrality, and decentralized trust.

Joseph Lubin: Sure. Happy to. Ethereum is a system that offers blockspace. It offers the highest quality blockspace in terms of guaranteed execution, credible neutrality, and decentralized trust, which comes from rigorous decentralization. You can think of the world economy as seeing two important new commodities introduced to it. Some of those commodities are related to artificial intelligence. You can think of them as GPUs and tokens, and they come in different grades. In terms of the financial rails that the future economy will run on, that is blockspace, essentially. Blockspace comes in a few different dimensions. One of those dimensions is capacity. How much guaranteed execution, decentralized trust computation can you buy? What is the level of quality of that? Ethereum is by far the highest grade trust commodity blockspace that has been produced so far.

Joe Lubin: Sure. Happy to. Ethereum is a system that offers blockspace. It offers the highest quality blockspace in terms of guaranteed execution, credible neutrality, and decentralized trust, which comes from rigorous decentralization. You can think of the world economy as seeing two important new commodities introduced to it. Some of those commodities are related to artificial intelligence. You can think of them as GPUs and tokens, and they come in different grades. In terms of the financial rails that the future economy will run on, that is blockspace, essentially. Blockspace comes in a few different dimensions. One of those dimensions is capacity. How much guaranteed execution, decentralized trust computation can you buy? What is the level of quality of that? Ethereum is by far the highest grade trust commodity blockspace that has been produced so far.

Speaker #2: which comes from rigorous decentralization. You can think of the world economy as seeing two important new commodities introduced to it. Some of those commodities are related to artificial intelligence—you can think of them as GPUs and tokens—and they come in different grades.

Speaker #2: And, in terms of the financial rails that the future economy will run on, that is, block space, essentially. And block space, comes in a few different dimensions.

Speaker #2: One of those dimensions is capacity—how much guaranteed execution, decentralized trust computation you can buy. And what is the level of quality of that?

Speaker #2: Ethereum is, by far, the highest grade trust commodity block space that has been produced so far. The other element is the ordering of block space, or the ordinality; so that element enables people to access an opportunity space.

Joseph Lubin: The other element is the ordering of blockspace or the ordinality. That element enables people to access an opportunity space, and that opportunity space can get incredibly valuable. There will be a huge amount of infrastructure built at layers 2 and higher, and even in private permission systems that are able to access activity on layer 2s and on layer 1, and that is going to drive a lot of demand, especially if we get some sort of clarity on regulatory uncertainty. There will be a lot of demand for the capacity of execution, and there will be a lot of demand for the position in blocks or the ordinality. We will see those two elements drive demand on Ethereum layer 1 much more than any other blockchain ecosystem.

Joe Lubin: The other element is the ordering of blockspace or the ordinality. That element enables people to access an opportunity space, and that opportunity space can get incredibly valuable. There will be a huge amount of infrastructure built at layers 2 and higher, and even in private permission systems that are able to access activity on layer 2s and on layer 1, and that is going to drive a lot of demand, especially if we get some sort of clarity on regulatory uncertainty. There will be a lot of demand for the capacity of execution, and there will be a lot of demand for the position in blocks or the ordinality. We will see those two elements drive demand on Ethereum layer 1 much more than any other blockchain ecosystem.

Speaker #2: and that opportunity space can get, incredibly valuable. so, there will be, a huge amount of infrastructure built at layers two and higher, and even in private permission systems that are able to, access activity on layer twos and on layer one.

Speaker #2: And that's going to drive a lot of demand, especially if we get some sort of clarity in regulatory uncertainty. So there will be a lot of demand for the capacity of execution, and there will be a lot of demand for the position in blocks, or the ordinality, and so we'll see those two elements drive demand on Ethereum layer one much more than any other blockchain ecosystem.

Speaker #4: Yeah, and Lance, just to put an additional point to it—you know, Robinhood chose Ethereum. They chose to be able to customize a Layer 2 blockchain, in this case, Arbitrum.

Joseph Chalom: Lance, just to put an additional point to it. Robinhood chose Ethereum. They chose to be able to customize a layer 2 blockchain, in this case, Arbitrum. The level of transaction volumes that we have seen over the past several weeks have been mind-blowing, and they are just getting started. All of the transactions require Ether. They pay gas fees, and the security is derived from Ethereum layer 1 main net. As we see more and more case studies like this, of the world's largest financial institutions and fintech companies build on layer 2s, secure and pay gas fees on layer 1, it will be very helpful for the demand for Ether, which is our entire thesis, is more activity, more security, more demand, and that is good for shareholders, and it is good for holders of the Ether token.

Speaker #4: The level of transaction volumes that we've seen over the past several weeks has been mind-blowing, and they're just getting started. All of the transactions require Ether to pay gas fees, and the security is derived from the Ethereum layer one mainnet.

Speaker #4: And as we see more and more case studies like this, of the world's largest financial institutions and fintech companies build on layer twos, secure, and pay gas fees on layer one, it will be very, very helpful for the demand for Ether, which is our entire thesis: more activity, more security, more demand, and that's good for shareholders, and it's good for holders of the Ether token.

Speaker #3: Thank you very much.

Lance Vitanza: Thank you very much.

Speaker #2: So you mentioned that, I should have mentioned that, SharfLink, I recently invested in, a project called Block Space. Block Space is, researchers and builders who are operating at the block building level, essentially building infrastructure, maturing the infrastructure, into efficient markets, and so, they are concerned with, proposing and building and validating and staking.

Joseph Lubin: I should have mentioned that SharpLink recently invested in a project called Blockspace. Blockspace is researchers and builders who are operating at the block building level, essentially building infrastructure, maturing the infrastructure into efficient markets. They are concerned with proposing and building and validating and staking. So all of the stuff that SharpLink relies on for its business. They represent a maturation of this commodity and derivative ecosystem.

Joe Lubin: I should have mentioned that SharpLink recently invested in a project called Blockspace. Blockspace is researchers and builders who are operating at the block building level, essentially building infrastructure, maturing the infrastructure into efficient markets. They are concerned with proposing and building and validating and staking. So all of the stuff that SharpLink relies on for its business. They represent a maturation of this commodity and derivative ecosystem.

Speaker #2: So, all of the stuff that SharpLink relies on for its business, and, they represent a maturation of this commodity and derivatives ecosystem.

Speaker #3: Thank you both.

Joseph Chalom: Thank you both.

Lance Vitanza: Thank you both.

Speaker #1: Thank you. Our next questions come from the line of Brian Kintzlinger with Alliance Global Partners. Please proceed with your questions.

Operator: Thank you. Our next questions come from the line of Brian Kinstlinger with Alliance Global Partners. Please proceed with your questions.

Speaker #5: Great. Thanks so much for taking my question. Late last week, there was a new Ethereum proposal to burn 100% of issued ETH once just over 60 million ETH is staked—clearly to create scarcity value.

Brian Kinstlinger: Great. Thanks so much for taking my questions. Late last week, there was a new Ethereum proposal to burn 100% of issued ETH once just over 60 million ETH is staked, clearly to create scarcity value. First, I am curious your thoughts on this proposal in general, how it would also impact SharpLink and its pipeline of yield opportunities at all. The second part of my question is, can you remind us how voting of this type of process and when that would occur?

Speaker #5: First, I'm curious your thoughts on this proposal in general, how it would also impact SharfLink and its pipeline of yield opportunities at all. And then the second part of my question is, can you remind us how voting and when would a, a, a of this type of process and when that would occur?

Speaker #4: Brian, great question and very timely. And for listeners, the beautiful thing about Ethereum is it's not controlled by an individual—pretty much anyone—and these are individuals and developers outside the Ethereum Foundation—can propose changes to the protocol.

Joseph Chalom: Brian, great question and very timely. For listeners, the beautiful thing about Ethereum is it is not controlled by an individual. Pretty much anyone, and these are individuals and developers outside the Ethereum Foundation, can propose changes to the protocol. In this case, there was a proposal, called EIP-8363, and as you said, it would try to limit the amount of Ether that is staked. To do so, they would reduce staking yield rewards after a certain level of staking. We are sharply opposed to it. We have made our position clear that while we do support more scarcity in Ether, we do support some limits. Today, the network pays validators and other ecosystem participants a really nice variable yield of about 2.75% to secure the network. We believe the researchers who are proposing this are really serious people. We know them personally, but we oppose it essentially for four reasons.

Speaker #4: In this case, there was a proposal called EIP-8363, and as you said, it would try to limit the amount of Ether that's staked, but to do so, they would reduce staking yield rewards after a certain level of staking.

Speaker #4: We are sharply opposed to it. We've made our position clear that, while we do support more scarcity in Ether, we do support some limits.

Speaker #4: Today, the network pays validators and other ecosystem participants a really nice variable yield of about 2.75% to secure the network. We believe the researchers who are proposing this are really serious people.

Joseph Chalom: Today, the network pays validators and other ecosystem participants a really nice variable yield of about 2.75% to secure the network. We believe the researchers who are proposing this are really serious people. We know them personally, but we oppose it essentially for four reasons.

Speaker #4: We know them personally, but we oppose it essentially for four reasons. Reducing yield would really potentially undermine DeFi activity. DeFi is Ethereum's superpower. It's overwhelmingly an Ethereum phenomenon.

Joseph Chalom: Reducing yield would really potentially undermine DeFi activity. DeFi is Ethereum's superpower. It is overwhelmingly an Ethereum phenomenon. That I think would be negative for the ecosystem. Second is Ether is really distinguished from Bitcoin in that it is natively productive. A lot of institutions, whether they be digital asset treasuries, ETFs, or the investors behind them, choose ETH because you get the capital appreciation plus the yield. Third is we do not think the yield here necessarily should be thought of as inflationary because a lot of the yield from staking and the rewards given to validators does not leave the ecosystem. It actually funds it. So we do not think of issuance of new Ether as a cost that Ethereum pays out to a random stranger. It is actually a transfer inside the system from the network itself to the people who secure and build it.

Speaker #4: And so that, I think, would be negative for the ecosystem. Second is, Ether is really distinguished from Bitcoin in that it's natively productive. And a lot of institutions, whether they be digital asset treasuries, ETFs, or the investors behind them, choose ETH because you get the capital appreciation plus the yield.

Speaker #4: And third is, we don't think the yield here should necessarily be thought of as inflationary, because a lot of the yield from staking and the rewards given to validators doesn't leave the ecosystem.

Speaker #4: It actually funds it. So we don't think of issuance of new Ether as a cost that Ethereum pays out to a random stranger.

Speaker #4: It's actually a transfer inside the system from the network itself to the people who secure and build it. So, for those reasons and others, we oppose it.

Joseph Chalom: For those reasons and others, we oppose it. This is not a technical change. You can think of it as a business model change. It requires consensus in the ecosystem. To date, if you look at sentiment on X, public remarks, you are seeing most economic participants and stewards oppose it. So I think it is a very long shot. If it was approved, it would take about 18 months to implement. But we think it has got nearly a very low chance of passing. As the days have been passing, you have seen more opposition than support. A change like this requires Ethereum community consensus, and it is not there. So we have been very vocal as a steward, as have many others in the ecosystem. This is the beauty of a decentralized ecosystem.

Speaker #4: This is not a technical change. You can think of it as a business model change. It requires consensus in the ecosystem, and, to date, if you look at sentiment on Twitter and public remarks, you're seeing most economic participants and stewards oppose it.

Speaker #4: So I think it's a very, very long shot, and if it was approved, it would take about 18 months to implement. But we think it's got a very low chance of passing.

Speaker #4: And as the days have been passing, you've seen more opposition than support. A change like this requires Ethereum community consensus, and it's not there.

Speaker #4: So we've been very vocal as a steward, as have many others in the ecosystem. This is the beauty of a decentralized ecosystem: you can propose, you can debate.

Joseph Chalom: You can propose, you can debate, but ultimately the community decides and so far the sentiment is extremely negative because we are at a moment that matters and we should not be changing the economic rules under Ether when the world's largest institutions rely on it, appreciate it, and are building on it.

Speaker #4: But ultimately, the community decides, and so far, the sentiment is extremely negative, because we're at a moment that matters, and we shouldn't be changing the economic rules under Ether when the world's largest institutions rely on it, appreciate it, and are building on it.

Brian Kinstlinger: When is that process for voting?

Joseph Lubin: This is

Joe Lubin: This is

Speaker #4: This is I. I can go into that.

Brian Kinstlinger: Sorry.

Joseph Lubin: I can go into that. This is not a new issue. This is an issue that has been under sometimes vigorous debate for years. As Joseph indicated, some of the proposers are good friends and we have a huge amount of respect for them. We do believe that while they may have some technical merits to their arguments, we believe that more than just technologists need to be involved in this discussion, especially economists, because we are really talking about ecosystem and economy building, rather than just tweaks to a technological protocol. The EIP, the Ethereum Improvement Process, involves the writing of a document, refinement of the document. It often involves the building of demonstration code. It involves vigorous debate and there is a process among core developers, where different EIPs can get voted on or prioritized, according to a bunch of discussion and some voting mechanisms.

Joe Lubin: I can go into that. This is not a new issue. This is an issue that has been under sometimes vigorous debate for years. As Joseph indicated, some of the proposers are good friends and we have a huge amount of respect for them. We do believe that while they may have some technical merits to their arguments, we believe that more than just technologists need to be involved in this discussion, especially economists, because we are really talking about ecosystem and economy building, rather than just tweaks to a technological protocol. The EIP, the Ethereum Improvement Process, involves the writing of a document, refinement of the document. It often involves the building of demonstration code. It involves vigorous debate and there is a process among core developers, where different EIPs can get voted on or prioritized, according to a bunch of discussion and some voting mechanisms.

Speaker #2: So, so this is not a new issue. This is an issue that's been, under sometimes vigorous debate for, for years. as Joseph indicated, some of the proposers are good friends, and, and we've a, a huge amount of respect for them, but, we, we do believe that the that while they may have some technical, merits to their arguments, we believe that the more than just technologists need to be involved in this, discussion.

Speaker #2: Especially economic—economists, because we’re really talking about ecosystem and economy building, rather than just tweaks to a technological protocol. So, the EIP, the Ethereum Improvement Process, involves the writing of a document, and refinement of the document.

Speaker #2: It often involves the building of demonstration code. It involves vigorous debate, and there's a process among core developers where different EIPs can get voted on or prioritized, according to a bunch of discussion and some voting mechanisms.

Speaker #2: So, it really requires a tremendous amount of consensus among diverse researchers, builders, and businesses in order to be prioritized, to be included, and to result in a hard fork.

Joseph Lubin: It really requires a tremendous amount of consensus amongst diverse researchers and builders and businesses in order to be prioritized to be included in a hard fork. Decentralization, I think at its best amongst a collective of well-informed builders. First, it is easy to align with the idea of supporting minimum viable issuance of Ether. It is even more important, I think, to increase the amount of Ether that is staked in different valuable situations and increase the burning of Ether. Burning of Ether will increase disinflation or make Ether deflationary for periods of time. That will become incredibly important in the not-too-distant future. It will be very beneficial to the supply-demand dynamics of Ether. It will be accelerated with the acceleration of business activities on Ethereum. Having a robust, rapidly growing financial infrastructure is key to Ethereum becoming a stronger asset.

Joe Lubin: It really requires a tremendous amount of consensus amongst diverse researchers and builders and businesses in order to be prioritized to be included in a hard fork. Decentralization, I think at its best amongst a collective of well-informed builders. First, it is easy to align with the idea of supporting minimum viable issuance of Ether. It is even more important, I think, to increase the amount of Ether that is staked in different valuable situations and increase the burning of Ether. Burning of Ether will increase disinflation or make Ether deflationary for periods of time. That will become incredibly important in the not-too-distant future. It will be very beneficial to the supply-demand dynamics of Ether. It will be accelerated with the acceleration of business activities on Ethereum. Having a robust, rapidly growing financial infrastructure is key to Ethereum becoming a stronger asset.

Speaker #2: So decentralization, I think, at its best, amongst a collective of well-informed builders. Increasing the burn—so first, it's easy to align with the idea of supporting minimum viable issuance of Ether.

Speaker #2: But it's even more important, I think, to increase the amount of Ether that is staked in different, valuable situations and increase the burning of Ether. Burning of Ether will increase disinflation or make Ether deflationary for periods of time.

Speaker #2: That will become incredibly important in the not-too-distant future. It will be very beneficial to the supply-demand dynamics of Ether, and it'll really be accelerated with the acceleration of business activities on Ethereum. So, having a robust, rapidly growing financial infrastructure is key to Ethereum becoming a stronger asset.

Speaker #2: Ether will be the base asset of this economy—the highest power of money—but so many other assets and instruments will be built on top of ETH and Ethereum.

Joseph Lubin: Ether will be the base asset of this economy, the highest power of money, but so many other assets, instruments will be built on top of ETH and Ethereum. We should not be messing around with monetary policy unless the community is nearly unanimously in agreement regarding any proposed changes. If there are ever monetary policy changes as they have been in the past, it will likely involve reduction of issuance. That is something that needs to be heavily researched.

Joe Lubin: Ether will be the base asset of this economy, the highest power of money, but so many other assets, instruments will be built on top of ETH and Ethereum. We should not be messing around with monetary policy unless the community is nearly unanimously in agreement regarding any proposed changes. If there are ever monetary policy changes as they have been in the past, it will likely involve reduction of issuance. That is something that needs to be heavily researched.

Speaker #2: So, we should not be messing around with monetary policy and TE unless the community is nearly unanimously in agreement regarding any proposed changes. If there are ever monetary policy changes, as there have been in the past, it will likely involve reduction of issuance.

Speaker #2: But that is something that needs to be heavily researched.

Speaker #5: Great. Thank you, Mike. Just my second question is, have the economics being negotiated on yield-maximizing opportunities changed during challenging times for crypto prices?

Brian Kinstlinger: Great. Thank you. My second question is: has the economics being negotiated on yield maximizing opportunities changed during challenging times for crypto prices?

Speaker #4: I don't think the economics have changed.

Joseph Chalom: I don't think the economics have changed. We've been much more focused and will continue to be focused not to chase yield for the sake of yield. Again, we're looking for risk-adjusted returns, not absolute returns. Whether it's our own deployments into DeFi or through our partnership in the Galaxy SharpLink Onchain Yield Fund, we make sure that we diligence and price in every risk instead of just chasing yields. I think you are seeing consolidation in the crypto industry as it matures. Large numbers of projects that couldn't get traction are going out of business and moving on, and that's okay. That's what happens in a maturing ecosystem, whether it's technology, whether it's fintech or financial services. We are seeing lots of opportunities to deploy our permanent capital, our ETH, and we're going to continue to be disciplined and not chase large top of the funnel.

Speaker #5: Okay.

Speaker #4: We've been much more focused and will continue to be focused—not to chase yield for the sake of yield. Again, we're looking for risk-adjusted returns, not absolute returns.

Speaker #4: And whether it's our own deployments into DeFi or through our partnership in the Galaxy-SharpLink On-Chain Yield Fund, we make sure that we diligence and price in every risk instead of just chasing yield.

Speaker #4: So, I think you are seeing consolidation in the crypto industry as it matures. Large numbers of projects that couldn't get traction are going out of business and moving on.

Speaker #4: And that's okay. That's what happens in a maturing ecosystem, whether it's technology, whether it's fintech, or financial services. So, we are seeing lots of opportunities to deploy our permanent capital, our ETH, and we're going to continue to be disciplined and not chase.

Speaker #4: Large, large, top-of-the-funnel, but the actual deployments are measured—probably one or two per quarter, not the dozens of opportunities we're seeing per quarter. So, again, the consolidation is actually healthy, and the protocols that are going to survive are the ones with product-market fit and the capital to get scale.

Joseph Chalom: The actual deployments are measured probably one or 2 per quarter, not the dozens of opportunities we're seeing per quarter. Again, the consolidation is actually healthy, and the protocols that are going to survive are the ones with product market fit and the capital to get scale. We're part of the product market fit validation and giving them capital to scale. We are in a cycle, and we're going to invest the same way across the cycle.

Speaker #4: And we're part of the product-market fit validation and giving them capital to scale. So, we are in a cycle, and we're going to invest the same way across the cycle.

Speaker #5: Okay. And so, insightful question. I would argue that if we had a reduction of regulatory uncertainty—if we had clarity a year ago or two years ago—then traditional finance would be piling in. Maybe agentic activity would be more prevalent on the ecosystem.

Brian Kinstlinger: Okay. Yeah.

Joseph Lubin: Insightful question. I would argue that if we had a reduction of regulatory uncertainty, if we had clarity a year ago or 2 years ago, then traditional finance would be piling in. Maybe agentic activity would be more prevalent on the ecosystem, and we would see just growing economic activity, which would be very positive for the price of Ether. I think the resurgence of this issue, the tapering of Ether issuance, is largely emerging, and maybe it is a little bit late because Ether is already showing significant signs of strength, and the ecosystem is doing great in terms of sentiment. But I think this reemergence has come out of the malaise that was being experienced a number of months ago, which is largely passed at this point.

Joe Lubin: Insightful question. I would argue that if we had a reduction of regulatory uncertainty, if we had clarity a year ago or 2 years ago, then traditional finance would be piling in. Maybe agentic activity would be more prevalent on the ecosystem, and we would see just growing economic activity, which would be very positive for the price of Ether. I think the resurgence of this issue, the tapering of Ether issuance, is largely emerging, and maybe it is a little bit late because Ether is already showing significant signs of strength, and the ecosystem is doing great in terms of sentiment. But I think this reemergence has come out of the malaise that was being experienced a number of months ago, which is largely passed at this point.

Speaker #5: And we'd see just growing economic activity, which would be very positive for the price of Ether. So I think the resurgence of this issue—the tapering of Ether issuance—is largely emerging, and maybe it's a little bit late because Ether is already showing significant signs of strength, and the ecosystem is doing great in terms of sentiment.

Speaker #5: But I think this reemergence has come out of the malaise that was being experienced a number of months ago, which is largely past at this point.

Speaker #5: So, yes, I do believe that folk sentiment or economic activity in our ecosystem drove the search for a way to boost the value of Ether.

Joseph Lubin: Yes, I do believe that both sentiment or economic activity in our ecosystem drove the search for a way to boost the value of Ether.

Joe Lubin: Yes, I do believe that both sentiment or economic activity in our ecosystem drove the search for a way to boost the value of Ether.

Speaker #5: Great. Thank you.

Brian Kinstlinger: Great. Thank you.

Speaker #1: Thank you. We have reached the end of our question-and-answer session. I would now like to hand the call back over to Joseph Chalom for closing remarks.

Operator: Thank you. We have reached the end of our question and answer session. I would now like to hand the call back over to Joseph Chalom for closing remarks.

Speaker #4: So first of all, thank you, operator, and thank you to everyone who joined today's call. During our initial year—our phase of formation and capital accumulation—we built the scale, the team, and the infrastructure required to manage an institutional-grade Ethereum treasury.

Joseph Chalom: First of all, thank you, operator, and thank you to everyone who joined today's call. During our initial year, our phase of formation and capital accumulation, we built the scale, the team, the infrastructure required to manage an institutional-grade Ethereum treasury. We're using that foundational period and build to compound value through dynamic capital allocation and the productive treasury management we've been talking about. Our objective hasn't changed, increase ETH per share and net ETH earned over time while continuing to be institutional in how we think about liquidity management, governance, and risk controls. We strongly believe, and our conviction has never been stronger, that Ethereum will play a role as the foundational financial infrastructure. That adoption is only accelerating, and we are very well-positioned to provide a public market investor with differentiated, productive exposure to that opportunity.

Speaker #4: We're using that foundational period to build and compound value through dynamic capital allocation and the productive treasury management we've been talking about. Our objective hasn't changed.

Speaker #4: Increase ETH per share and net ETH earned over time, while continuing to be institutional in how we think about liquidity management, governance, and risk controls.

Speaker #4: We strongly believe in our conviction—has never been stronger—that Ethereum will play a role as the foundational financial infrastructure, that adoption is only accelerating, and we are very well positioned to provide a public market investor with differentiated, productive exposure to that. This next Ethereum era isn't limited to our own balance sheet.

Joseph Chalom: Our role in this next Ethereum era isn't limited to our own balance sheet. This past quarter, we stepped up as an active steward in the ecosystem. We are now focusing on the new era that's going to be grounded in adoption and long-term value creation. We're very proud of the role that we've played so far and even more energized about what's ahead. To the team, to our investors, to our analysts covering us, thank you for your continued support, and we look forward to updating you again next quarter.

Speaker #4: This past quarter, we stepped up as an active steward in the ecosystem. We are now focusing on the new era that's going to be grounded in adoption and long-term value creation.

Speaker #4: We're very proud of the role that we've played so far, and even more energized about what's ahead. So to the team, to our investors, to our analysts covering us—thank you for your continued support, and we look forward to updating you again next quarter.

Speaker #1: Thank you so much. This does now conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time, and enjoy the rest of your day.

Operator: Thank you so much. This does now conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time and enjoy the rest of your day.

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