- Sharps Technology stock jumps 96% after $400M Solana announcement.
- Health sector increasingly adopting crypto treasuries for diversification.
- Experts warn volatility risks for non-core crypto investments.
Shares of Sharps Technology soared nearly 100% on Monday following the company’s groundbreaking move to integrate cryptocurrency into its corporate treasury. The medical device maker announced a $400 million strategy centered around Solana’s native token, SOL, sending its stock from $7.40 to an intraday high of $14.53 before settling at $12.01.
Sharps Partners with Solana Foundation for PIPE Deal
Sharps Technology signed a letter of intent with the Solana Foundation to acquire $50 million worth of SOL tokens at a 15% discount to the 30-day average price. The acquisition is structured as a private investment in public equity (PIPE), allowing accredited investors to buy shares at a discount while securing pre-funded and stapled warrants tied directly to Solana.
The deal is expected to close on or around August 28, signaling a major step in Sharps’ pivot to digital asset exposure. Additionally, the company appointed Alice Zhang, co-founder of Jambo, as chief investment officer and welcomed James Zhang as strategic adviser—both prominent figures in the Solana ecosystem.
Health Sector Embraces Crypto Treasury Strategies
Sharps’ move reflects a growing trend in the healthcare sector, where publicly traded companies are leveraging cryptocurrencies as treasury assets. Crypto treasuries—firms holding digital assets like Bitcoin or SOL on their balance sheets—allow investors to gain indirect crypto exposure through equity positions.
This strategy, inspired by Michael Saylor’s pioneering work at MicroStrategy in 2020, has recently gained traction among biotech and medical firms. In 2024, Hoth Therapeutics allocated $1 million in Bitcoin, Atai Life Sciences announced a $5 million Bitcoin treasury, and 180 Life Sciences rebranded as ETHZilla with plans for a $425 million Ether reserve.
Wall Street Cautions on Volatile Treasury Moves
Despite growing adoption, financial experts warn of the risks involved. Charles Schwab noted that companies placing large amounts of cash into volatile assets unrelated to core operations could raise investor concerns. Sharps’ bold Solana strategy highlights both the potential upside and the inherent risks of merging healthcare equities with cryptocurrency exposure.
Also Read: Solana ETF Faces SEC Delays, But Market Expects Approval by 2025
Sharps Technology’s unprecedented crypto treasury initiative illustrates the increasing fusion of healthcare and digital assets. While the move has captured investor enthusiasm, it also underscores the importance of careful risk management in a volatile market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
