TL;DR
- Treasury Exit: SkyAI has sold all of its Solana holdings and now holds about $223.8 million in cash, marking a major shift from its position as one of the largest publicly traded Solana treasury companies.
- Buyback Plan: The company is offering $3 per share or a warrant in a tender offer designed to repurchase up to 95% of outstanding shares and warrants, potentially reducing its cash position to about $22.5 million before costs.
- Investor Pushback: Bastion Trading criticized the proposal, requested an independent review, and said it would not participate under the current terms, citing concerns over pricing and governance conditions.
SkyAI has fully exited its Solana treasury position after selling its remaining reserve to support a large share and warrant buyback program. The company, formerly known as Sharps Technology Inc., said it held approximately $223.8 million in cash as of Oct. 16 and had completed the sale of all of its SOL. The move represents a dramatic change for SkyAI, which only weeks ago reaffirmed its commitment to a Solana-focused treasury strategy.
From Major SOL Holder to Zero Balance
On Sept. 14, SkyAI reported holding more than 2 million SOL, making it the fifth-largest publicly traded Solana treasury company at the time. That position changed rapidly over the following weeks. An Oct. 11 buyback announcement revealed that SkyAI had already sold roughly 1 million SOL. A subsequent SEC filing showed the company still held around 600,000 SOL, indicating that the remaining balance was later liquidated.
The latest announcement confirms that SkyAI no longer owns any SOL. As a result, the company removed a proposed tender-offer condition that required the Solana price to remain above $100, since that requirement no longer applied after the treasury was fully sold.
Buyback Could Consume Most Cash Reserves
The company is offering $3 per share or a warrant as part of a tender offer aimed at repurchasing 95% of outstanding shares and warrants. If the offer is fully subscribed, SkyAI said it would be left with roughly $22.5 million before costs. The scale of the buyback highlights how significantly SkyAI has shifted its balance sheet. Funds that were previously tied to a large digital asset treasury have now been converted into cash to support the repurchase effort.
Questions Remain About Future Strategy
The rapid reduction of SOL holdings prompted criticism from Bastion Trading, which owns nearly 10% of SkyAI. Bastion called for an independent review and said it would not participate in the buyback under the proposed terms. Among its requests, Bastion advocated for a $3.50 per-share price, restrictions on insiders, and the exclusion of strategic advisor warrants.
Meanwhile, SkyAI continues to describe its business as building a financial platform that combines stablecoin rails on Solana with AI. Monday’s announcement did not indicate whether SkyAI intends to rebuild its SOL treasury or provide further updates on that platform. The company did state that it plans to remain listed on Nasdaq after the buyback process is completed. Shares of SKYA were up 4.5% on the day to $2.77, bringing year-to-date gains to 35%.
