TLDR
- Sharps Technology announced a $100 million stock repurchase program for its common shares through open market and negotiated transactions
- The company holds 2 million SOL tokens worth approximately $448 million and recently secured a $400 million PIPE deal to build the largest Solana treasury
- STSS shares have dropped 43% over the past month to $6.67, despite SOL rallying 55.5% in the past three months
- DeFi Development, another Solana treasury company, also increased its buyback program from $1 million to $100 million last week
- Sharps recently partnered with Crypto.com to manage its digital asset treasury through their institutional custody infrastructure
Sharps Technology announced a $100 million stock repurchase program on Wednesday. The Nasdaq-listed company plans to buy back its common shares through open market and negotiated transactions.
The medical device firm holds 2 million SOL tokens currently valued at $448 million. In August, Sharps secured a $400 million private investment in public equity deal with backing from ParaFi Capital, Pantera Capital, and Monarq Asset Management.
The PIPE deal was priced at $6.50 per unit with warrants exercisable at $9.75. Sharps stated its goal to become the largest Solana digital asset treasury company.
The company also signed an agreement with the Solana Foundation to purchase $50 million worth of SOL at a 15% discount to the 30-day average market price. Alice Zhang, Sharps’ chief investment officer, said the investment reflected growing institutional adoption of Solana.
STSS shares closed at $6.67 on Wednesday, down 43% over the past month. The stock spiked to $16 at the end of August before declining.
Market Performance Gap
The share price decline contrasts with Solana’s performance during the same period. SOL trades at $228.04, up 55.5% over the past three months.
Stock buyback programs typically signal that management believes shares are undervalued relative to company assets. The repurchase can help support share prices by reducing the number of outstanding shares.
Sharps recently announced it would use Crypto.com’s institutional custody infrastructure and OTC desk to manage its digital asset treasury. The company aims to leverage Solana’s high throughput and low-cost settlement capabilities.
Other Solana Treasury Companies
DeFi Development increased its stock repurchase program from $1 million to $100 million last week. The company’s board approved the expansion with an initial $10 million threshold requiring additional board notification.
Upexi and Forward Industries are also among the largest Solana digital asset treasury companies. These firms hold SOL tokens as part of their corporate treasury strategies.
Solana gained 26% in September compared to Ethereum’s 8% increase for the same period. SOL has climbed 9% in October, reaching $227.50.
The SEC is scheduled to make a decision on a potential Solana ETF on October 10. Some analysts believe approval could drive further price gains for SOL.
Sharps Technology executives view Solana as infrastructure for institutional-grade finance. The blockchain’s transaction speed and cost efficiency make it attractive for corporate treasury applications.
The $100 million buyback program allows Sharps to repurchase shares based on market conditions and regulatory factors. Repurchased shares will either be retired or held as treasury stock.
