NovaBay Pharmaceuticals, a nanocap with a market capitalization of roughly $30 million, announced Monday it would abandon its pharmaceutical business and rebrand as Stablecoin Development Corporation, disclosing holdings of approximately 2.06 billion SKY governance tokens valued at roughly $147 million - nearly five times the company's own equity value.
The ticker changes from NBY to SDEV on April 3.
NBY shares gained as much as 20% on the announcement before paring some gains Monday.
The stock had previously executed a 1-for-5 reverse split in February 2026 as part of its restructuring.
The Token Position
The company holds 8.78% of SKY's total circulating supply - a position built through two channels.
Approximately 1.09 billion tokens were purchased on the open market at an average of $0.065/SKY, deploying around $70.7 million.
The remainder came via a $134 million private placement closed in January 2026 with R01 Fund LP, Framework Ventures, Tether (USDT) Investments, and Sky Frontier Foundation. Cumulative staking rewards have generated an additional 26.6 million tokens; the protocol's current SKY staking yield exceeds 10% annually.
SKY is the governance token of the Sky protocol - the rebranded MakerDAO ecosystem - which issues the USDS stablecoin and generates revenue through on-chain lending. The token traded at roughly $0.073 Monday.
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The Holding Company Model
The company describes its strategy as an "on-chain holding company" focused on long-duration protocol participation.
SKY is currently the only approved digital asset under its framework, with returns tied to staking parameters and governance rather than speculative price exposure.
Warrants issued in the January placement carry a weighted-average exercise delay of approximately 9.9 months, with individual purchasers capped at trading 10% of the 30-day average daily volume per day.
The pivot follows broader stablecoin momentum in Washington, where lawmakers last week reached a preliminary agreement on stablecoin yield treatment in Senate Banking Committee negotiations.
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