On November 18, Sharps Technology released its first quarterly financial report after adopting a Solana-centric digital asset reserve strategy. The data showed that its core medical device business generated negligible revenue, while the company held nearly 2 million SOL tokens. The Nasdaq-listed company disclosed in regulatory filings that its digital asset portfolio had a fair value of $404 million as of September 30, but this figure reflects the price level at the end of the quarter. However, based on the current SOL price of approximately $138, the company's holdings are now valued at a significantly reduced $275 million.
Furthermore, the company's quarterly product revenue was only $83,622, while product costs exceeded $1.2 million, resulting in significant losses in its manufacturing operations. Sales and administrative expenses jumped to $110.7 million, pushing the quarterly net loss close to $103 million. Driven by cryptocurrency holdings, total assets surged from $7.3 million at the end of last year to $444 million. The financial report also showed that the company recognized $15.5 million in unrealized gains from digital assets during the period, and listed $7.6 million in margin loans and several warrant liabilities related to the August financing.
Sharps announced in late August that it had launched its Solana asset reserve strategy through a private placement of over $400 million, backed by institutions such as ParaFi Capital and Pantera Capital. In early October, it proposed a $100 million stock buyback plan, but the latest filings did not disclose the progress of this plan. Market reaction has remained weak. The company's stock price fell to a record low this week, having declined for several months since hitting a high of $16 at the end of August. According to Google Finance data, the stock price was below $2.90 on Monday morning, with its market capitalization significantly lower than the current implied value of its Solana holdings.
