Drugmaker NovaBay pivots to ‘Stablecoin Development Corporation’…accumulates 1.1 billion SKY tokens

U.S. pharmaceutical company NovaBay Pharmaceuticals has changed its name to Stablecoin Development Corporation (SDEV) and shifted its business focus to digital assets.

According to GlobeNewswire on the 3rd (local time), NovaBay changed its ticker on NYSE American from “NBY” to “SDEV” and began fully rolling out its new business structure. Michael Cazley, CEO of SDEV, said, “Stablecoins represent the most important structural opportunity in digital finance,” adding, “We will build a listed-company model that can access the cash flows of this market.”

In particular, SDEV said it secured approximately $134 million in strategic investment from Tether Investments, Framework Ventures, the R01 Fund, among others.

The funds were then used to accumulate tokens. Using the investment proceeds, SDEV purchased a total of 1.09 billion Sky (SKY) tokens. This brought its total holdings to 2.06 billion tokens, accounting for about 8.78% of total supply.

Most of the SKY tokens are currently staked on the Sky Protocol, and the company has so far earned about 26.6 million SKY tokens in rewards. The plan is to make interest income generated through on-chain participation a core revenue source, in addition to gains from price appreciation.

The company also put in place market-stabilization measures. Warrants issued to investors were structured to be exercised sequentially over about 9.9 months. After exercise, daily sales are capped at within 10% of trading volume. The move is intended to reduce near-term selling pressure and reinforce incentives for long-term investment.