SharpLink criticized the Strategy approach to crypto asset management - ForkLog: cryptocurrencies, AI, singularity, the future

# SharpLink Criticized Strategy’s Approach to Crypto Asset Management

Ethereum companies are abandoning the capital management model popularized by Strategy founder Michael Saylor. This was stated by SharpLink Gaming CEO Joseph Shalom in an interview with The Block.

According to him, firms in the Ethereum ecosystem are betting on staking income and balance sheet simplification — in contrast to Saylor’s “financial engineering,” which often uses leverage for aggressive Bitcoin investing.

Shalom considers Ethereum a more efficient reserve asset: token holders receive passive income directly. SharpLink has accumulated 868,699 ETH worth about $1.96 billion and ranks second in the market after BitMine, which holds over 5.1 million ETH.

The SharpLink CEO noted that many industry players suffered from issuing convertible bonds and preferred securities in the early stages. SharpLink focused on raising equity capital and staking — this helped maintain stability despite a 91% drop in stock prices from the 2025 highs.

Shalom also highlighted the trend toward asset tokenization and the growth in stablecoin usage. He mentioned plans by NYSE and Nasdaq to transition to 24/7 trading and DTCC’s development of RWA-backed securities.

According to the top executive, in the future, Ethereum’s correlation with Bitcoin and the tech sector will weaken. Growth drivers will include DeFi development, real-world asset tokenization, and AI integration into blockchain.

Bit Digital Revenue Decline

Mining company Bit Digital released its first-quarter financial report. Total revenue was $27.9 million — a 13.6% decrease from the previous period.

Key figures:

• Net loss: $146.7 million (versus $185.3 million in Q4 2025), driven by digital asset revaluation;
• Cash: $79.5 million;
• Digital asset volume: $295 million;
• Ethereum holdings: 155,444 ETH valued at about $327 million.

Bitcoin mining revenue decreased by 32.9% — to $3.7 million. The company confirmed its course to reduce dependence on Bitcoin mining in favor of the Ethereum ecosystem and AI infrastructure.

Ethereum staking income fell to $2.3 million amid a decline in the asset’s price. To increase balance sheet flexibility, the company transferred 70,000 ETH to liquid staking protocols.

Cloud services generated $16.8 million. The colocation (hardware hosting) segment grew by 23.9%, generating $4.8 million in revenue.

Bit Digital holds a controlling stake in AI infrastructure operator WhiteFiber. CEO Sam Tabar stated that the future of the financial system is built on the intersection of AI and Ethereum.

“We provide computing infrastructure through WhiteFiber and settlement pathways via our Ethereum staking platform. These are parts of a unified platform,” — he emphasized.

Recall that in May, BitMine Chairman Tom Lee stated that the company has nearly achieved its Ethereum accumulation goal and plans to slow down purchases.