In early 2026, the company completed a comprehensive realignment of its business, focusing on acquiring digital assets that provide exposure to economic participation within open digital financial networks. They completed a private placement of pre-funded warrants in exchange for $25 million of cash and $109,031,380.86 million in SKY tokens and stablecoins. The company held an aggregate of 943,599,688.812 SKY as of the closing of the Private Placement.
The company's Digital Asset Strategy Committee has set the primary strategic objective to use all available cash to strategically acquire SKY, the protocol token of the decentralized Sky network. It is the initial and sole digital asset approved by the committee. The price of SKY is determined in network-based markets by supply and demand among market participants, and its economic characteristics are derived from protocol-generated revenues associated with stablecoin issuance, collateralized lending, and other on-chain financial services.
The company has adopted Accounting Standards Update (“ASU”) No. 2023-08, which requires measurement of eligible crypto assets at fair value, with changes in fair value recognized in net income. The legal and regulatory landscape applicable to blockchain-based networks and network-native units like SKY continues to evolve, and regulatory actions affecting trading venues, custodians, or other service providers could impair access, liquidity, or pricing for SKY.
The press release also highlights various risks associated with their blockchain-based asset strategy, including potential failure to successfully implement the strategy, risks associated with the Sky Protocol, and governance risks associated with the Sky ecosystem.
The market has reacted to these announcements by moving the company's shares 16.39% to a price of $14.77. For the full picture, make sure to review NovaBay Pharmaceuticals's 8-K report.
