Summary
- TD Cowen reaffirmed its buy rating on SharpLink and its $16 price target, saying the stock has about 106%% upside from the previous session’s close.
- The firm said SharpLink holds about 873,000 ETH (about $2 billion) and could benefit from stronger Ethereum demand driven by growth in stablecoins, tokenization and DeFi.
- TD Cowen said SharpLink could generate about $59 million in annual staking income and has a break-even Ethereum price of $883, making it increasingly difficult to justify the stock’s current 0.8x NAV discount.
Forecast Trend Report by Period
TD Cowen maintained a bullish view on SharpLink, saying expanding stablecoin and tokenization markets could strengthen Ethereum’s long-term demand base and benefit the Ethereum treasury strategy company.
The investment bank reiterated its buy rating on SharpLink and reaffirmed a $16 price target, The Block reported on May 12.
That implies about 106% upside from the previous session’s close.
TD Cowen also pointed to SharpLink’s recent launch of a yield-focused fund jointly managed with Galaxy Digital.
The fund is targeting about $125 million in commitments, with SharpLink planning to contribute about $100 million. The strategy aims to generate returns above standard staking yields by tapping DeFi and liquidity-provision opportunities.
SharpLink currently trades at about 0.8 times net asset value, TD Cowen wrote, adding that rising Ethereum demand and improving capital efficiency are making that discount increasingly difficult to justify.
SharpLink holds about 873,000 ETH, according to the report. At current prices, that stake is worth about $2 billion.
Demand tied to real-world usage in the Ethereum ecosystem has been expanding, TD Cowen said.
The firm identified stablecoins, real-world asset tokenization, decentralized finance and AI-based agentic finance as key drivers of Ethereum demand.
It described agentic finance in particular as a long-term demand factor the market has yet to fully price in.
TD Cowen also said SharpLink’s staking-based earnings model could provide downside protection.
Under the firm’s estimates, SharpLink can generate about $59 million in annual staking income, while fixed costs are projected at about $22.3 million.
The report said the break-even Ethereum price under the current model is about $883, well below the current Ether price of about $2,300.
SharpLink previously operated as SharpLink Gaming and shifted its business focus to an Ethereum treasury strategy company in mid-2025 with backing from ConsenSys. Ethereum co-founder Joe Lubin now serves as chairman.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
