TL;DR
- Sharps Technology earns a 7% annual yield from staking its Solana holdings.
- The company launched a Solana validator in partnership with Coinbase.
- It implemented a 90-day advisor lock-up and a $100M share buyback program.
Sharps Technology disclosed the first performance figures from its Solana treasury holdings on Monday, revealing the Nasdaq-listed medical device company earns approximately 7% gross annual returns through staking before fees. The update marks the company’s initial quantitative report since it began accumulating SOL tokens.
Nearly all of Sharps’ Solana holdings currently participate in staking, according to the statement. The company positions the yield as recurring income rather than speculation on token price movements.
SOL has declined nearly 60% from its peak one year ago, while STSS shares trade more than 80% below last summer’s highs. The price deterioration hasn’t stopped Sharps from expanding its involvement in Solana’s network infrastructure.
The 7% yield exceeds average staking returns across the Solana network, placing Sharps among higher-performing validators. The company attributes the outperformance to partnerships with institutional-grade staking providers.
Coinbase Partnership Deepens Network Participation
Sharps launched an institutional validator for Solana in partnership with Coinbase earlier this month. The company delegated a portion of its treasury to the new validator, shifting from passive holding to direct network operations.
The validator represents a change in how Sharps approaches its digital asset strategy. Instead of simply buying and staking tokens through third parties, the company now operates infrastructure that secures the network and earns validation rewards.
“STSS continues to deliver strong revenue from its SOL holdings due to its integration with institutional-quality staking infrastructure,” said James Zhang, a strategic advisor to Sharps.
The company emphasized it maintains sufficient operating capital and carries no corporate debt. The clean balance sheet provides financial flexibility as crypto markets remain volatile.
Sharps also implemented governance measures aimed at rebuilding investor confidence. The company entered a 90-day lock-up agreement with its strategic advisor in January, preventing sales or hedging of advisory warrants and underlying shares.
The advisor confirmed it sold or hedged none of its warrants or shares before signing the agreement. The restriction removes potential selling pressure during the lock-up period.
Additionally, Sharps approved a share buyback program worth up to $100 million. The authorization signals management confidence in current valuation and provides potential support for the stock price.
The approach differs from other public companies holding digital assets. Strategy and similar firms bet primarily on Bitcoin price appreciation, while Sharps emphasizes income generation from staking as a core component of total returns.
The 7% annual yield provides predictable income independent of short-term price swings. The rate surpasses yields on investment-grade corporate bonds and offers diversification from traditional treasury strategies.
However, the model carries technical and market risks. Validators face penalties for downtime or malicious behavior. SOL price declines also reduce the nominal value of holdings, though they don’t affect staking percentage yields.
Sharps frames Solana staking as part of a long-term treasury approach focused on generating recurring cash flow. The company treats staking rewards as operational income rather than speculative gains.
Sharps has not disclosed what percentage of total revenue comes from staking versus medical device operations. The company also hasn’t specified the exact size of its SOL holdings or the dollar value of staking income generated to date.
Right now Solana (SOL) is trading at about 124 USD per coin, within a daily range roughly between 118 and 125 USD, which reflects active intraday volatility around this zone. The current price is only a few dollars above the recent open and previous close near 118.7 USD, showing that the latest move has been a moderate short‑term bounce rather than a major breakout.
SOL is well below its recent yearly high near 253–300 USD, so the market is effectively valuing it at around half of its peak levels from the last big upswing, which highlights both upside potential and drawdown risk for new entries.
