TLDR
- Sharps Technology approved a $100 million stock repurchase program for STSS shares through open market transactions
- The company holds 2 million SOL tokens valued at $448 million after securing a $400 million funding deal in August
- STSS stock dropped 43% in the past month to $6.67 while Solana gained 55.5% over three months
- Fellow Solana treasury firm DeFi Development also raised its buyback program to $100 million last week
- Sharps partnered with Crypto.com for institutional custody of its digital asset holdings
Sharps Technology unveiled a $100 million stock buyback program on Wednesday. The company will purchase its common shares through open market and private transactions.
The Nasdaq-listed firm currently holds 2 million SOL tokens worth approximately $448 million. Sharps completed a $400 million private investment deal in August with ParaFi Capital, Pantera Capital, and Monarq Asset Management.
The funding round priced shares at $6.50 per unit with warrants at $9.75. Sharps aims to operate the world’s largest Solana corporate treasury.
The company secured an agreement with the Solana Foundation to buy $50 million in SOL at a 15% discount to the 30-day market average. Alice Zhang, chief investment officer at Sharps, called the move a reflection of growing institutional interest in Solana.
STSS Stock Performance Lags Solana Gains
STSS shares closed at $6.67 on Wednesday, down 43% over 30 days. The stock hit $16 in late August before starting its decline.
Solana trades at $228.04, up 55.5% over the past three months. The price gap between STSS stock and SOL holdings creates a potential value opportunity.
Buyback programs typically indicate management believes shares trade below intrinsic value. Reducing outstanding shares can boost earnings per share and support stock prices.
Sharps recently selected Crypto.com to handle custody and over-the-counter trading for its treasury. The company cites Solana’s fast transaction speeds and low costs as key advantages.
Trend Among Solana Treasury Companies
DeFi Development expanded its repurchase program from $1 million to $100 million last week. The board set a $10 million initial threshold before additional purchases require approval.
Other companies holding large Solana treasuries include Upexi and Forward Industries. These firms view SOL as a strategic corporate asset.
Solana outperformed Ethereum in September with a 26% gain versus 8% for ETH. The token added another 9% in October, reaching $227.50.
The SEC faces an October 10 deadline for a Solana ETF decision. Some market watchers expect approval could drive additional price momentum for SOL.
Treasury Strategy and Market Position
Sharps executives view Solana as infrastructure for institutional finance applications. The blockchain processes transactions faster and cheaper than competing networks.
The $100 million buyback gives Sharps flexibility to repurchase shares based on market conditions. Bought shares will be retired or held in treasury.
Share repurchases and digital asset accumulation represent two paths for Sharps to deliver shareholder value. The company balances both strategies as it builds its Solana position.
Sharps holds the second-largest corporate Solana treasury by value. The firm’s 2 million SOL tokens represent a major bet on the blockchain’s future adoption.
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