Summary Sharplink offers a 'purer' investment opportunity compared to Bitmine, which is heavily influenced by its founder. SBET should benefit from ETH after the passage of CLARITY catalyzes on-chain finance. A recent deal with Galaxy Digital shows their ability to optimize yield. As ETH has the largest market cap and highest gas fees, it may saturate its upside sooner, warranting a cyclical exit plan for buyers. I wanted to look at Sharplink ( SBET ). That means over, say, Bitmine ( BMNR ). The latter is too defined by its founder. I think SBET is "purer." We can just tackle an ETH ( ETH-USD ) treasury. ETH YTD Returns (Seeking Alpha) ETH's price is a total contrast to 2025. Fights over the CLARITY Act knocked it down. That was January. I have seen more selling pull it down. The Ethereum Foundation experienced major resignations . Many viewed its ETH selling badly too. I see a lot of doubt about the chain. The chain affects SBET's returns. SBET's YTD Returns (Seeking Alpha) The Senate is another fact. It will soon decide CLARITY. So I think it's time for investors to make up their minds. Does ETH have a role in on-chain finance? Plus, what does that make it worth? Feb. 2026 Investor Presentation Sharplink points to adoption trends. JP Morgan ( JPM ) launched a tokenized money market on-chain. Robinhood ( HOOD ) launched tokenized stocks there. Even Fidelity launched their own stablecoin. (Yes, even Fidelity, haha!) Top 5 Cryptos By Market Cap (CoinMarketCap.com) ETH is still the #2 market cap . These embraces are a big reason why. On-chain finance is coming. It seems a lot will happen on Ethereum. So that's the role. Still, we don't have the value. Why should it be worth more or less? The answer is mainly about gas fees. Comparisons show that Ethereum's gas costs a bit more. 7-day median was $0.012 per transaction. Gas fees are cyclical. They aren't a percentage of the deal. They go up when more happens on the chain. A smaller transaction could cost more gas then. Ethereum does over 2M daily transactions. After CLARITY this should rise. Agentic commerce will push it too. It's already been rising . This puts more load on the network. That should raise gas fees. Sharplink also points to the chain's asset lead. So there's a lot to transact. I think higher gas fees are likely. Feb. 2026 Investor Presentation How does SBET add to the value? Well, there's the standard DAT strategy. They can issue SBET a premium to mNAV. They can buy ETH with the proceeds. This is accretive to shareholders. Staking Yield (Seeking Alpha) They can also stake their ETH. They earn 3%, higher than most. Last month, they teamed up with Galaxy Digital ( GLXY ). They deployed $100M into a joint fund. Galaxy will manage it. The idea is to get more yield. Management is going to try more things like this. But they didn't elaborate much. Balance Sheet (Q1 2026 Form 10Q) Sharplink is different from other DATs. It doesn't use any debt or other leverage. Equity was paid for the treasury. This protected it against the big drawdown. Basically, there's no bankruptcy risk. Sharplink Dashboard (sharplink.com) SBET is hugely discounted. The mNAV is about 0.8x. It's had this discount for months. You see this with leveraged DATs like MSTR. It's strange that SBET is "punished." I think it's clear mispricing. This, plus ETH's tailwinds, makes it a Buy. Comparisons of gas fees (dune.com) Risk factors loom. Rival chains have lower gas fees. There's a risk that demand for ETH plateaus. On-chain finance is supposed to be cheaper. If gas fees are too high, it defeats the point. Solana is cheaper. It already has more transactions too. CLARITY creates survival of the fittest. CLARITY could also be defeated. This would hurt crypto broadly. Opposition remains in the Senate. A lack of ethics provisions is a major grievance. Some Democrats agreed to move it out of the Banking Committee. This does not mean they support it on a floor vote. These risks can be managed. I have this framing in mind. See ETH and SBET as cyclicals. Look at this as a down cycle. Have an exit plan after ETH climbs. Perhaps after it hits $3K, look at the progress. How soon after CLARITY was it? How much has happened on-chain since then? For SBET, my guess is to consider $15. See what's going on once it gets there. See if the gas fees slow down demand. I think SBET is good. It's just not a clear lineup. Other chains are smaller. It's easier to say that for them. An exit plan helps here. So while I rate Buy, it's with that word of caution.