TL;DR
- Sharps Technology fell to a record low following its first quarterly report with a treasury focused on nearly 2 million Solana tokens.
- Its medical device business generated $83,622 in revenue against $1.2 million in manufacturing costs and $110.7 million in administrative expenses.
- The SOL accumulation strategy and crypto exposure pushed total assets to $444 million, but the drop in SOL’s price and operational deficits are creating significant pressure.
Sharps Technology (STSS) hit a record low this week after publishing its first quarterly report since adopting a Solana (SOL)-focused treasury strategy.
The company holds nearly 2 million SOL, with a current market price of roughly $130 valuing its holdings at $275 million, well below the $404 million reported at the end of the quarter.
Sharps Lost $103 Million
Sharps’ core business, focused on medical devices, generated marginal revenue: $83,622 for the quarter, while manufacturing costs exceeded $1.2 million, leaving the segment deeply unprofitable. Selling, general, and administrative expenses reached $110.7 million, resulting in a quarterly net loss of $103 million.
Sharps’ balance sheet reflects a radical shift: total assets rose from $7.3 million to $444 million in one year, driven almost entirely by crypto holdings. During the quarter, the company reported an unrealized gain of $15.5 million in digital assets, but also recorded a $7.6 million margin loan and warrant-related liabilities tied to its August financing.
The SOL accumulation began with a private placement exceeding $400 million, backed by ParaFi Capital and Pantera Capital. The company later announced a $100 million share repurchase plan, though the latest filing provided no update on its execution.
Shares Plunge
The market reacted negatively. Sharps shares fell below $2.90 this week, extending a decline that started after peaking near $16 in late August. The current market capitalization is far below the implied value of the Solana treasury.
While the unrealized gain in Solana provides accounting support, the drop in SOL’s price directly impacts the perceived value of the company. The combination of operational losses, high expenses, and crypto volatility creates heavy pressure and uncertainty over the long-term viability of the treasury strategy.
Sharps faces a complex scenario where its balance sheet growth is tied to Solana, while its core business continues to generate insufficient liquidity.
