Public firms and cryptocurrency-focused treasury firms are increasingly using staking as a source of passive income.
According to the corporate's dashboard, Sharplink Gaming, the second-largest corporate Ether (ETH) holder on the planet, generated 10,657 Ether ($33 million) in passive income through its staking activity over the past seven months.
Staking allows investors to earn passive income by sending their tokens to secure proof-of-stake blockchain networks.
At current prices, SharpLink said last week's staking activity created roughly $1.4 million in shareholder value. “Our thesis stays unchanged: 100% ETH and 100% stake,” the corporate said in a post on X on Wednesday.
SharpLink staking rewards, all-time chart. Source: SharpLink
SharpLink expands income-focused strategy
The company announced on Thursday that SharpLink has staked a further $170 million price of Ether into Ethereum Layer 2 scaling solution Linea to earn additional Ether restapping rewards.
According to SharpLink, the structure combines native Ethereum staking returns with re-staking rewards and incentives from Linea and related protocols.
SharpLink announced the multi-year initiative in October, which will probably be held under institutional safeguards by Anchorage Digital Bank, SharpLink's qualified custodian.
Source: SharpLink
Institutions are normalizing returns from crypto staking
BitMine Immersion Technologies, the biggest corporate Ether holder, has also increased its staking activity, surpassing 936,512 Ether staked on Thursday, price about $2.87 billion.
In comparison, SharpLink has staked a complete of 864,840 Ether, representing the corporate's total holdings, purchased at a mean price of $3,609 per token, the corporate's dashboard shows.
As Cointelegraph reported on Wednesday, more institutions are entering into Ether staking, including investment banking giant Morgan Stanley, which has filed to launch a spot Ether exchange-traded fund to capture additional staking.
The increasing participation of institutional investors suggests that cryptocurrency staking is evolving from a distinct segment experiment in decentralized finance (DeFi) to a yield-generating strategy utilized by firms.
