Well, that was a wild day on the market. Shares of Sharps Technology, a medical device firm, basically doubled in value on Monday. The stock shot up a staggering 96% at one point, hitting $14.53, before settling back to close at $12.01. For a company that was trading around seven bucks just last Friday, that’s a massive jump. And it all seems to be tied to one thing: a huge bet on cryptocurrency.
The surge came right after the company laid out a new plan. They’re looking to build a digital asset treasury worth up to $400 million, and they’re doing it on the Solana blockchain. It’s a pretty sharp left turn for a company that makes syringes and other medical safety products.
The Solana Deal Explained
So, what’s actually happening? Sharps confirmed it signed a letter of intent with the Solana Foundation. The plan is to purchase $50 million worth of SOL, Solana’s native token, through what’s called a PIPE deal—a private investment in public equity. Accredited investors can buy company stock and warrants bundled together at a set price. The interesting part is how this ties the company’s equity directly to how well Solana’s price performs. It’s a direct link.
To lead this new direction, they’ve brought on Alice Zhang, a co-founder from a Web3 startup called Jambo, as their chief investment officer. Another well-known figure in the Solana space, James Zhang, is joining as an advisor. In the company’s statement, Alice Zhang pointed to Solana’s growing global adoption, suggesting now is the right time for a move like this.
Not the First, But Perhaps the Boldest
Sharps isn’t the first healthcare-related company to make a play like this. Others have dipped a toe in. Hoth Therapeutics put a million into Bitcoin late last year. Atai Life Sciences did a $5 million purchase back in March. And then there’s 180 Life Sciences, which rebranded entirely and announced a massive Ether treasury after its stock had fallen off a cliff. But Sharps’ proposed $400 million plan is on a completely different scale.
Retail investors on platforms like Stocktwits went pretty much nuts over the news. Sentiment flipped from just “bullish” to “extremely bullish” almost overnight. Message volume hit record levels. People are clearly excited.
A Word of Caution from the Street
But not everyone is cheering. You have to wonder, right? This is a medical device company moving a huge part of its reserves into a famously volatile asset that has nothing to do with its core business. Investment firms like Charles Schwab have even put out warnings, calling moves like these a potential “red flag.” It’s a valid point. Cryptocurrencies can swing wildly in value, which introduces a big layer of risk for a publicly traded company.
Sharps, for its part, seems convinced this will pay off in the long run. They’re betting that a Solana treasury will bring better returns than just sitting on traditional cash reserves. As for Solana itself, the token was trading around $187 on Tuesday, down from a brief pop over $212 during the weekend. It’s still a long way from its all-time high, but it continues to attract serious institutional interest, with companies like Visa testing its network for settlements. Only time will tell if this gamble ends up being a masterstroke or a misstep.
