Medical device company Sharps Technology saw its value nearly double on Monday, with its stock jumping 96% to an intraday high of $14.53, following the announcement of a $400 million initiative to establish a Solana-based digital asset treasury.
The surge came after news of a private placement agreement and a collaboration with the Solana Foundation to acquire SOL, the native token of the blockchain. Sharps ended the day at $12.01, significantly above Friday’s close of $7.40.
Solana Treasury Strategy Announced
Sharps confirmed on Monday that it has signed a letter of intent with the Solana Foundation to purchase $50 million in SOL tokens through a private investment in public equity (PIPE) transaction. Accredited investors will acquire company stock and stapled warrants at $6.50 per unit, with warrants redeemable at $9.75 over three years. This arrangement ties Sharps’ equity closely to the performance of Solana’s price.
The company appointed Alice Zhang, co-founder of Web3 startup Jambo, as its chief investment officer to spearhead the treasury transition. Another key Solana figure, James Zhang, will act as a strategic adviser.
“Global adoption of Solana’s ecosystem is accelerating,” Alice Zhang stated in the company’s press release. “We believe now is the right time to establish a digital asset treasury strategy with SOL, which will position Sharps for long-term success.”
The offering, expected to close around August 28, allows investors to fund allocations using either locked or unlocked SOL and obtain pre-funded and stapled warrants in exchange.
Several healthcare and biotech companies listed in the U.S. have already integrated cryptocurrencies as treasury assets. Hoth Therapeutics invested $1 million in Bitcoin in November 2024, and Atai Life Sciences followed with a $5 million acquisition in March. 180 Life Sciences rebranded to ETHZilla in July and announced a $425 million Ether treasury after experiencing a 99% drop in stock value.
Wall Street Warns of Risks
Investor enthusiasm surged following Sharps’ announcement. On Stocktwits, a social platform that captures retail market sentiment, the sentiment around STSS turned from “bullish” to “extremely bullish” within 24 hours, with message activity reaching record highs.
However, not all analysts are convinced. In a recent investor education video, Charles Schwab cautioned that companies investing significant reserves in volatile digital assets outside their core business “have raised a red flag or two.”
Nevertheless, Sharps remains confident that this crypto strategy will enhance its long-term outlook. With experienced executives and increasing institutional support, the company is banking on a Solana treasury to yield better returns than conventional reserves.
Solana’s native token fluctuated between $187-189 on Tuesday, reflecting a 10-11% drop in 24 hours after momentarily surpassing $212 over the weekend. Despite the decline, SOL continues to be one of the most institutional-backed assets, with Visa utilizing its blockchain to expedite global credit card settlements. The token reached its all-time high of $293 in January.
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