Medical Device Company Sharps Technology Raises $400 Million for Solana Investment

The company’s shares jumped 96% from $7.40 to reach $14.53 during trading hours. By market close, the stock settled at $12.01. Trading volume exploded to 7.7 million shares, compared to the typical daily average of just 73,000 shares over the past three months.

A small medical device company made big waves on Monday after announcing plans to raise $400 million to buy Solana cryptocurrency. Sharps Technology (NASDAQ: STSS) stock price nearly doubled in a single day as investors reacted to the surprising business pivot.

The $400 Million Deal Structure

Sharps Technology will raise money through a private investment deal. Investors can buy shares for $6.50 each, with attached warrants that can be exercised at $9.75 within three years. The transaction should close around August 28, 2025.

Major crypto investment firms backed the deal. ParaFi, Pantera, FalconX, CoinFund, and Arrington Capital are among the investors putting money into Sharps Technology’s Solana strategy.

The company also signed a letter of intent with the Solana Foundation. Under this agreement, the foundation would sell $50 million worth of SOL tokens to Sharps at a 15% discount from market prices.

New Leadership for Crypto Strategy

Sharps Technology brought in new executives to manage its digital asset plans. Alice Zhang, who co-founded the Web3 phone company Jambo, joined as Chief Investment Officer and board member. James Zhang will work as a strategic advisor to help grow the Solana treasury.

“Global adoption of Solana’s ecosystem is accelerating as it continues to receive institutional support,” Alice Zhang said in the company’s announcement. The new team will partner with asset managers including Monarq Asset Management, ParaFi, and Pantera to build the cryptocurrency holdings.

From Medical Devices to Crypto Treasury

Sharps Technology traditionally makes safety syringes and other medical equipment for healthcare providers. The company focuses on ultra-low waste syringe technologies with safety features to prevent accidental needle sticks.

Now the company wants to become what it calls the “largest Solana digital asset treasury.” The funds raised will primarily go toward buying SOL tokens in the open market rather than developing new medical products.

This represents a dramatic shift from the company’s core business. Many small publicly traded companies have made similar moves into cryptocurrency as they search for new growth opportunities.

Growing Trend in Corporate Crypto Holdings

Sharps Technology joins other companies that have adopted cryptocurrency treasury strategies. Institutional accumulation of Solana tokens has grown significantly, with publicly traded companies now holding nearly 6 million SOL worth over $1.1 billion.

Several healthcare and biotech firms have made similar pivots. Hoth Therapeutics allocated $1 million to Bitcoin last year. Another company, 180 Life Sciences, rebranded itself as ETHZilla and announced plans for a $425 million Ethereum treasury after its stock had fallen 99%.

The strategy follows the model pioneered by MicroStrategy (now called Strategy), which became the first major public company to buy Bitcoin as a treasury asset. Strategy now holds 632,457 Bitcoin worth approximately $71 billion.

Broader Solana Investment Activity

Sharps Technology’s announcement came on the same day as reports of an even larger Solana investment plan. Galaxy Digital, Multicoin Capital, and Jump Crypto are reportedly working to raise $1 billion for a Solana-focused treasury company.

The proposed $1 billion fund would be more than twice the size of any existing Solana corporate treasury. These firms plan to acquire a publicly traded company and convert it into a digital asset treasury vehicle focused on SOL tokens.

Solana’s network activity has grown substantially, with the blockchain processing $4.55 billion in daily decentralized exchange volume. This puts Solana ahead of Ethereum and other competing networks in terms of trading activity.

Risks and Market Concerns

Wall Street analysts have raised concerns about companies putting large amounts of cash into volatile cryptocurrency assets unrelated to their main business. Charles Schwab recently warned that this strategy “has raised a red flag or two” for investors.

Sharps Technology’s stock remains down 98.81% year-to-date despite Monday’s surge. The company has struggled financially and faced compliance issues with Nasdaq listing requirements in recent months.

SOL tokens currently trade around $200, maintaining their position as the sixth-largest cryptocurrency by market value. However, crypto prices remain highly volatile and can experience significant swings in short periods.

Market Outlook

Multiple companies are now competing to build the largest Solana corporate treasuries. This institutional interest could provide price support for SOL tokens, but it also concentrates holdings among fewer entities.

Investors should carefully consider the risks before following these corporate crypto strategies, as digital asset prices can be unpredictable.