Key takeaways
- SkyAI liquidates its entire treasury of Solana tokens
- Company launches $201 million share and warrant buyback
- Major shareholder challenges pricing and treasury liquidation decisions
Nasdaq-listed SkyAI (SKYA), formerly Sharps Technology, has sold its entire Solana (SOL) treasury and accumulated approximately $223.8 million in cash, reversing a cryptocurrency investment strategy that previously involved holding more than two million SOL tokens.
According to the company's October 19 announcement, SkyAI has launched a cash tender offer worth up to $201.3 million to repurchase shares and warrants for $3 each. The offer covers up to 95% of each eligible security class and expires October 29 unless extended or terminated earlier.
The announcement represents a complete exit from the company's former Solana treasury position, creating an unusual contrast with publicly traded cryptocurrency companies that continue accumulating digital assets.
SkyAI Sells 2 Million SOL as $201 Million Buyback Begins
SkyAI held more than two million SOL in September, ranking among the largest publicly traded corporate holders of Solana. The company had previously expanded its treasury operations through institutional custody arrangements and a Coinbase validator.
However, the strategy changed rapidly during October.
On October 11, SkyAI disclosed selling approximately one million SOL. Subsequent filings showed its remaining holdings falling to roughly 600,000 tokens before another update revealed just 210,000 SOL and $204.6 million in cash on October 14.
The company has now completed its liquidation, confirming that it held no SOL as of October 16. Its SEC tender documents date the completion of the sales to October 15.
SkyAI previously disclosed an average selling price of $107.51 per SOL, net of fees, for transactions completed before its October 14 update. That figure should not be treated as the average price for its entire liquidated treasury.
$223.8 Million Cash Position Faces Shareholder Opposition
The company intends to finance its $201.3 million maximum tender offer entirely from existing cash, without additional borrowing.
If fully subscribed, the repurchase would leave approximately $22.5 million before transaction expenses, representing a substantial reduction in its available capital.
SkyAI also removed an earlier condition requiring SOL to remain above $100 during the tender period, explaining that it no longer holds the cryptocurrency.
The offer remains controversial. Bastion Trading, which disclosed ownership of approximately 9.99% of SkyAI's common stock, demanded a higher repurchase price of at least $3.50, independent scrutiny of the SOL transactions and changes to the company's board.
Bastion also questioned whether the proposed transaction adequately protects shareholders.
What SkyAI's Exit Means for Solana Treasury Companies
SkyAI's decision contrasts with other corporate SOL holders, including Forward Industries, which previously expanded its Solana holdings despite substantial volatility.
Forward's earlier unrealized losses illustrate how balance-sheet exposure to SOL can magnify financial risk for publicly traded companies.
Unlike those businesses, SkyAI is now shifting toward an AI-powered financial platform intended to combine blockchain-based data and financial services. The company has not announced plans to rebuild its SOL treasury.
Its reversal also follows a period when corporate cryptocurrency ownership was increasingly promoted as a source of shareholder exposure to digital assets, with companies such as Upexi reporting substantial treasury-related losses.
