UPDATED Sharps Technology, a medical device and pharmaceutical packaging company, said it plans to sell over $400 million of stock to fund a Solana (SOL) treasury.
Several large crypto investment funds such as ParaFi, Pantera Capital, and Monarq Asset Management are among the investors, according to a company press release.
Shares spike
Shares in Sharps, which are traded on the Nasdaq stock exchange, surged as much as 80% after the announcement, peaking at $13.28 on Monday, before closing at $10.35.
Sharps has signed a letter of intent with the Solana Foundation, in which the Foundation committed to selling $50 million of SOL at a 15% discount to a 30-day time-weighted average price.
Importing digital expertise
The company appointed Alice Zhang to its board and as Chief Investment Officer. Zhang previously co-founded Jambo, the first web3 phone with a built-in decentralized app store and Avalon Capital, a global fund specializing in digital assets and technology. Zhang noted the importance of Solana in the digital ecosystem, stating "Solana defines the standard for digital infrastructure.”
Sharps also appointed Solana advocate James Zhang, Jambo co-founder and CEO, as a strategic advisor. "Solana is internet capital markets, the next evolution in global finance," Mr Zhang said.
Largest treasury
Sharps is raising $400 million through a private placement through Thursday 28 Aug, to fund the acquisition of SOL, the establishment of treasury operations and other working capital and general corporate purposes. The fundraising may set up Sharps to become one of the largest Solana corporate treasuries. The current market leader is Upexi, holding just over 2 million SOL, and a treasury value of $379 million, according to data from CoinGecko.
The position may not last very long. Galaxy Digital, Multicoin Capital, and Jump Crypto are looking to establish a SOL treasury worth about $1 billion, according to a Monday report from Bloomberg.
From syringes to Solana
Commenting on the strategic pivot – from a company that makes disposable syringes to an investor in cryptocurrency, Paul Danner, Executive Chairman of Sharps Technology, said:
"We believe our digital asset-native advisory team, defined accumulation strategy, and partnerships with top-tier asset managers position us well to become a leading SOL treasury."
