LDO surges as SharpLink seeks to stake $200m in ETH via Lido
Key takeaways
SharpLink Gaming plans to stake $200 million worth of Ethereum through Lido.
The allocation will be converted into wrapped staked ETH and held with Anchorage Digital.
wstETH enables SharpLink to earn staking rewards while retaining access to DeFi liquidity.
SharpLink Gaming (SBET) plans to allocate $200 million worth of Ethereum to Lido as the company seeks to generate additional returns from its expanding ETH treasury.
The Ethereum will be staked and converted into wrapped staked ETH, known as wstETH. Anchorage Digital will provide institutional custody for the assets, according to SharpLink’s announcement on Thursday.
The allocation adds Lido to SharpLink’s wider staking and restaking strategy, allowing the company to earn Ethereum network rewards while maintaining greater flexibility over how it deploys its holdings.
SharpLink expands its Ethereum staking strategy
SharpLink is pursuing ways to increase the productivity of the ETH held on its balance sheet instead of leaving the assets idle.
Through Lido, the company will stake $200 million in ETH and receive wstETH in return. The token represents staked Ethereum and the rewards generated from participating in the network’s proof-of-stake validation system.
Unlike directly staked ETH, wstETH can be transferred, traded or used within compatible decentralized finance applications while the underlying tokens continue generating staking rewards.
The structure could allow SharpLink to earn a base Ethereum staking yield while retaining the option to deploy its wstETH across other protocols.
SharpLink CEO Joseph Chalom described the allocation as an expansion of the company’s strategy to make its ETH holdings more productive. He said wstETH provides composability while allowing the company to maintain institutional risk standards.
SharpLink will custody the resulting wstETH with Anchorage Digital. The decision provides the company with a regulated institutional custodian while it increases its exposure to Ethereum’s staking and decentralized finance infrastructure.
Institutional custody is particularly important for corporate crypto treasuries because companies must manage operational, cybersecurity and governance risks alongside potential investment returns.
SharpLink did not disclose whether Anchorage Digital would also facilitate deployment of the wstETH into other DeFi platforms or whether the assets would initially remain in custody.
Technical forecast: LDO targets the $0.3370 resistance
The LDO/USD 4-hour chart remains bearish despite Lido rallying over the past few hours. However, the technical indicators suggest that the bulls could push the price higher in the near term.
The RSI of 57 is above the neutral 50, indicating that the bears are no longer in control of the market. The MACD lines also add further confluence to the bullish narrative.
If the rally persists, LDO could target the first major resistance at the $0.3370 level, which also coincides with the TLQ on the 4-hour timeframe.
An extended rally could allow LDO to reclaim the $0.4063 swing high for the first time since July 27.
However, if the bears regain control, LDO could retest last week’s low of $0.2716 in the near term.
