Stablecoin Development Corporation (SDEV), a U.S.-listed SKY treasury company, closed at $7.48 on Oct. 2, up 104.37% on the day. Volume reached about 138 million shares.
Using the Sept. 2 closing price of $0.8591 as the starting point, the stock has risen about 770% in a month, leaving it at roughly 8.7 times its level from one month earlier. Most of the move came in the last four trading sessions: SDEV rose 108.28% on Sept. 29, fell 20.8% on Sept. 30, gained 41.31% on Oct. 1, and then added another 104.37% on Oct. 2. Over those four sessions, the stock climbed from $1.57 to $7.48.
Company said it knew of no undisclosed material information
On Sept. 29, the company said it was not aware of any undisclosed material information.
From drugmaker NovaBay to an on-chain holding company focused on SKY
SDEV was previously NovaBay Pharmaceuticals, a U.S. drugmaker that sold ophthalmic, wound-care, and skin-care products. The company sold the trademark for its main Avenova brand in January 2025, formally changed its name on April 2, 2026, and began trading under the SDEV ticker on April 6. It describes itself as an "on-chain holding company."
The company’s core bet is the Sky protocol, formerly MakerDAO. The protocol rebranded in August 2024 and introduced USDS as the successor stablecoin to DAI. The old governance token, MKR, exited in May 2025. According to Sky’s official technical documentation, 1 MKR converts into 24,000 SKY at a fixed rate. SKY holders can vote in governance and can also stake tokens to receive SKY-denominated staking rewards funded by protocol revenue.
Held about 2.315 billion SKY as of Sept. 13
According to SDEV’s September S-3/A filing, the company held about 2.315 billion SKY as of Sept. 13, equal to roughly 10% of total supply. Nearly all of those tokens were staked. In the second quarter, the company received 31.746 million SKY in rewards and recognized $2.2 million in revenue.
In the same quarter, as SKY fell in price, the company booked a $50.6 million unrealized loss. The report says its accounting results still largely track the token price.
mNAV swung from a discount to a premium
mNAV refers to the ratio of a company’s equity market value to the value of the tokens it holds. A figure below 1 means the company’s market capitalization is lower than the value of its crypto holdings. The report says Odaily cited SDEV’s mNAV at 0.39 on Sept. 28, meaning the company was valued at only 39% of the value of its SKY position. It adds that the long-running discount had been tied to market concerns over potential dilution through the company’s at-the-market, or ATM, issuance program.
Using the Sept. 18 share count and the Oct. 2 closing price, BlockTempo calculated SDEV’s market capitalization at about $387 million. Based on the company’s 2.315 billion SKY holdings as of Sept. 13 and an HTX price of about $0.0883 at the U.S. stock market close, those tokens were worth about $204 million. Dividing the two gives an mNAV of about 1.9x, meaning the market value stood roughly 90% above the value of the company’s SKY holdings.
During the same period, SDEV rose from $1.57 on Sept. 28 to $7.48, while SKY gained only about 13%. That widened the gap between the company’s market value and the value of the tokens on its balance sheet.
167.5 million prepaid warrants remain unexercised
Beyond the ATM program, the company also faces a larger source of potential dilution. Under the S-3/A filing, prepaid warrants issued in a January private placement could add as many as 167.5 million shares if fully exercised. That would increase the share count from 50.62 million on July 27 to about 218 million, or 4.3 times the original level.
Investors in the private placement already paid $0.80 per share and would need to pay only another $0.05 per share upon exercise. The report says most of the proceeds tied to those warrants have already been converted into SKY and are reflected on the company’s balance sheet.
If those 167.5 million shares are included, the fully diluted market capitalization would be about $1.64 billion at a $7.48 share price, or roughly 8 times the value of the company’s token holdings.
Warrants unlock in three tranches
The warrants become exercisable in three stages: 20% from July 16, 30% from Oct. 16, and the remaining 50% from Jan. 16, 2027.
After exercise, each investor is capped at 4.99% or 9.99% ownership, and daily sales cannot exceed 10% of the average daily trading volume over the prior 30 trading days. The company said in its filing that these limits affect the timing and pace of sales, not the total amount that can ultimately be sold.
How the report framed the company and its mNAV
In the FAQ section, the report describes SDEV as Stablecoin Development Corporation, formerly NovaBay, which changed its name in April 2026 and now focuses on holding SKY, the governance token of the Sky protocol. As of Sept. 13, it held about 2.315 billion SKY, or roughly 10% of total supply.
On mNAV, the report’s stated framework is that Odaily put the figure at 0.39 on Sept. 28, while a calculation based on the Sept. 18 share count and the Oct. 2 close of $7.48 puts market capitalization at about $387 million, or about 1.9 times the value of the company’s SKY holdings. On that basis, the company’s equity value has moved above the value of its token position.