Solana treasury Sharps Technology eyes $100 million share buyback

Solana digital asset treasury (DAT) Sharps Technology said Thursday it wants to acquire up to $100 million of the company's outstanding common stock.

"This new stock repurchase program will enable the company to repurchase its shares in the open market and in negotiated transactions," the company said in a statement .

In August, the Nasdaq-listed, small-cap medical device firm said it wanted to become the "largest Solana digital asset treasury" and initiated a private investment in public equity transaction (PIPE) worth over $400 million. Several investors participated, including ParaFi Capital and Pantera Capital.

Share buybacks can help boost a company's share price as management tries to communicate to investors that it believes its stock is undervalued relative to its holdings.

Sharps Technology (ticker STSS) has said it holds 2 million SOL, which is currently worth about $448 million. STSS shares were changing hands at $6.52, down 4%, according to Yahoo Finance. The company's shares have fallen significantly since spiking at $16 at the end of August.

Last week, fellow Solana treasury DeFi Development also said its board of directors had approved an increase to the company's stock repurchase program, bumping it up from $1 million to "up to $100 million."

Aside from Sharps Technology and DeFi Development, Upexi and Forward Industries are two more of the largest Solana DATs, according to The Block's Data Dashboard.

Earlier this week, Sharps Technology said it would use Crypto.com's "institutional-grade custody infrastructure and OTC desk ... to manage its digital asset treasury."