Sharps Technology's BitGo Collaboration Institutionalizes Its High-Risk Solana Treasury, But Core Business Woes Persist

What happened

Sharps Technology announced a strategic collaboration with BitGo to expand and institutionalize its Solana treasury strategy through BitGo's regulated custody services. This move highlights the company's deepening reliance on its $404 million SOL position, which now dominates its balance sheet amid a loss-making medical device business with minimal revenue and negative gross margins. The partnership aims to mitigate custody risks for its speculative crypto holdings, following a history of governance shifts and the loss of key Provensa IP and manufacturing assets. However, it fails to address the fundamental challenges of an unproven syringe franchise, persistent cash burn, and extreme volatility from leveraged SOL exposure. Ultimately, this is a tactical step that does little to stabilize the company's hybrid model or restore investor confidence after a 99.6% stock decline.

Implication

The BitGo deal may enhance custody security for Sharps' SOL assets, but it does not lessen the inherent price volatility, margin loan risks, or counterparty exposures that make the digital-asset strategy highly unpredictable. For the core medical segment, there is no indication of accelerated revenue growth or margin improvement, leaving the company dependent on staking income that fluctuates with crypto markets. Governance concerns remain elevated, as this collaboration follows abrupt pivots, leadership changes, and asset divestitures that undermine strategic consistency. The stock's drastic decline reflects deep market skepticism, and without tangible progress in commercializing syringes or de-risking the treasury, this move alone won't alter the high-risk profile. Therefore, investors should maintain a wait-and-see approach, focusing on operational traction and reduced crypto dependency before considering any investment.

Thesis delta

The collaboration with BitGo introduces a layer of institutional oversight to Sharps' crypto treasury, potentially lowering custody risks, but it does not shift the fundamental thesis. The company remains a speculative bet on SOL prices and an unproven medical device business, with no material change to its loss-making operations or volatile balance sheet. Thus, the 'WAIT' recommendation persists, requiring evidence of sustainable revenue growth and better risk management before any upgrade.