Sharps Technology Jumps 70% After Raising $400M for Solana Treasury

Nasdaq-listed steadfast Sharps Technology (STSS) rallied arsenic overmuch arsenic 70% connected Monday connected raising $400 cardinal to found what it says could go the largest firm integer plus treasury of Solana (SOL).

The firm's fundraising drew backing from immoderate of the astir progressive investors successful integer assets, including ParaFi, Pantera, FalconX, CoinFund and Arrington Capital. Under the deal, shares were sold astatine $6.50 per portion with attached warrants exercisable astatine $9.75. Closing is expected by August 28.

The banal concisely topped $13 successful the greeting U.S. hours earlier paring gains, up 53% from $7.3 astatine Friday's close.

The institution plans to allocate the funds chiefly toward acquiring SOL, the autochthonal token of the Solana blockchain. Alice Zhang, co-founder of Solana-backed task Jambo, besides joined the steadfast arsenic main concern serviceman and committee member.

The Solana Foundation, the non-profit improvement enactment focusing connected the Solana network, has committed to selling $50 cardinal successful SOL tokens astatine a 15% discount to a 30-day time-weighted mean price, taxable to conditions, according to the press release.

Sharps is the latest nationalist steadfast pivoting to accumulate cryptocurrencies, a caller inclination that has captivated banal markets. These firms, often dubbed integer plus treasuries (DATs), rise wealth connected superior markets to bargain cryptos, aiming to replicate the occurrence of Michael Saylor's Strategy (MSTR). Strategy has go the largest firm proprietor of bitcoin (BTC) with a stash worthy northbound of $70 billion.

The fever has already extended to Solana, with SOL Strategies (HODL), DeFi Development (DFDV) and Upexi (UPXI) being among listed firms stacking SOL.

DATs a arsenic a proxy play connected crypto prices and astir of them commercialized astatine a premium comparative to the underlying holdings. However, they could travel nether unit during marketplace downturns erstwhile the premium contracts, capping their quality to rise funds to substance purchases.

Read more: Corporate Bitcoin Treasuries Could Raise Credit Risks, Morningstar DBRS Says

Upcoming $1B SOL Treasury, DFDV to Sell Equity

Sharps' determination was not the lone Solana treasury-related quality connected Monday.

Prominent crypto firms Galaxy Digital, Multicoin Capital and Jump Crypto are reportedly seeking to rise $1 cardinal to physique a treasury focused connected SOL. They program to bargain retired a listed steadfast and hired Cantor Fitzgerald arsenic the pb banker.

Meanwhile, DeFi Development (DFDV), led by erstwhile executives of Kraken, announced connected Monday to rise $125 cardinal by selling equity, seeking to summation its SOL holdings.

The banal tumbled 19% connected the news.

Read more: BNB-Focused Treasury Firm B Strategy Looks to Raise $1B With Backing From CZ's YZi Labs