Catenaa, Friday, March 27, 2026-Shares of NovaBay Pharmaceuticals rose about 19% Monday after the company announced a shift to digital assets, rebranding as Stablecoin Development Corp. and disclosing a $150 million position in SKY tokens tied to the Sky protocol, formerly known as MakerDAO.
The Emeryville, California-based firm said it will adopt an “on-chain holding company” model centered on long-term participation in blockchain protocols, with SKY designated as its primary treasury asset. The move follows the sale of its legacy eye care and wound care businesses in late 2025 and a $134 million private placement backed by crypto-focused investors.
NovaBay, founded in 2002 as a biotechnology company, had struggled in recent years with declining revenues and setbacks in product development. Its stock once traded near $12 during the COVID-19 testing surge in 2021 but had fallen sharply before the latest announcement. The company reported about $1.8 million in revenue for 2025, reflecting its reduced operating footprint after divestitures.
The pivot to digital assets began earlier this year with a capital raise that included cash, stablecoins and SKY tokens. NovaBay said it now holds more than 2 billion SKY tokens, representing a notable share of the token’s total supply. The company added that staking activity has generated additional tokens since January, contributing to its treasury growth.
The Sky protocol, a rebranded version of MakerDAO, governs a decentralized system that issues a stablecoin backed by a mix of crypto assets and real-world collateral. The protocol generates revenue through lending and other on-chain activity, which is distributed to participants and token holders.
NovaBay’s move reflects a broader trend of publicly traded companies incorporating digital assets into their balance sheets or business models. Several firms have explored crypto treasury strategies, seeking exposure to digital asset growth while diversifying away from traditional operations.
The company’s new structure positions it as a participant in decentralized finance, where returns may come from staking rewards and protocol activity rather than product sales. NovaBay said its treasury framework will evaluate additional digital assets over time, though SKY is currently the only approved holding.
Market reaction to the announcement was mixed. While the stock rose sharply on the day, it remains far below previous highs. Trading volumes increased significantly, indicating heightened investor interest. Some market participants view the shift as an attempt to reposition the company within a fast-growing sector, while others have raised concerns about governance, risk management and the departure from its original business focus.
The valuation dynamics are also notable. NovaBay’s disclosed crypto holdings exceed its prior market capitalization, suggesting that investor perception may increasingly hinge on the performance of its digital asset treasury rather than its historical operations.
Analysts remain divided on the long-term viability of such corporate pivots. Supporters argue that blockchain-based financial systems offer new revenue streams and capital efficiency, particularly for companies with limited growth in traditional sectors. Critics caution that volatility in digital assets and regulatory uncertainty could introduce significant risks, especially for firms transitioning away from established industries.
Market observers note that similar pivots in the past have produced mixed outcomes, with some companies benefiting from early adoption while others faced steep losses and legal scrutiny. The success of NovaBay’s strategy is likely to depend on the performance of the underlying protocol, broader market conditions and the company’s ability to manage operational and compliance risks.
The stablecoin sector has grown rapidly, with total market value reaching hundreds of billions of dollars. Stablecoins are widely used for trading, payments and decentralized finance applications, and are increasingly attracting institutional interest.
Regulatory developments are also shaping the landscape. Policymakers in the United States and other regions are working to establish clearer frameworks for stablecoins and digital assets, which could influence adoption and market structure in the coming years.
NovaBay’s transition comes at a time when companies across industries are exploring blockchain technology and tokenized assets as part of broader digital transformation strategies. The firm said its rebranding will take effect in early April, with further updates expected as it refines its treasury approach and participates in protocol governance.
