Sharps Technology Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand Sharps Technology’s performance this year. I’ve broken down the complex filing information into plain English so you can decide if this company fits your investment goals.

1. What does this company do?

Sharps Technology started as a maker of safety syringes and drug-delivery systems. In fiscal year 2025, the company made a radical pivot. While they are still selling off their remaining medical inventory—which brought in about $2.4 million over the last year—the company has effectively turned into a crypto-holding firm. After raising $400 million in early 2025, they spent $385 million to buy Solana (SOL) at an average price of $142 per token. They are now a hybrid: a medical supply business with a balance sheet dominated by digital currency.

2. The "Solana" Strategy

The company now uses Solana as its primary reserve asset. They hold roughly 2.7 million SOL tokens. They are "staking" these holdings, which earns them an extra 6.5% in SOL tokens annually. To manage this, they hired an outside firm, Digital Asset Management Partners (DAMP).

This firm is owned by the brother of Sharps Technology’s Chief Investment Officer. Their 20-year contract requires a $10 million upfront fee and a yearly management fee of 2.5% of the total assets. Based on the current portfolio, this costs about $9.6 million every year, regardless of whether the crypto market goes up or down.

3. Financial Health & Risks

The company now relies on crypto price swings rather than selling medical products:

• Extreme Concentration: Solana makes up 94% of the company’s assets. If the price of SOL drops 10%, the company loses $38.5 million in value. This loss far outweighs any profit from the medical business.
• High Costs: The $10 million upfront fee and the 2.5% annual fee create a heavy burden. These costs totaled $19.6 million last year, which is eight times the gross profit from their medical business.
• Dilution: To raise the $400 million, the company issued 80 million new shares. This reduced your ownership percentage by 65%, which lowers the potential earnings for each share you own.
• The "Split Personality" Problem: The stock price swings wildly based on the hourly price of Solana. Because the medical business loses $3.2 million a year, the stock has no traditional price floor based on actual business performance.

4. Future Outlook

Management plans to hold the Solana for at least five years. They hope to use any gains to buy biotech companies or buy back shares if the stock price falls too low. They expect staking rewards to eventually cover the $9.6 million management fee, but this depends on the staking yield staying above 2.5%.

5. Should you invest?

This is no longer a medical device company; it is a leveraged bet on Solana. You are essentially paying a 2.5% annual fee to an insider to hold a volatile asset you could buy yourself. Given the high fees, massive share dilution, and the move away from their core business, this is a high-risk, speculative play.

Bottom line: If you are looking for a medical device company, this is no longer the business it once was. If you are looking for crypto exposure, consider whether the management fees and share dilution are worth the cost compared to holding the assets directly.