SkyAI (SKYA), a technology firm listed on Nasdaq and formerly known as Sharps Technology, has fully exited its Solana (SOL) holdings, converting its position into roughly $223.8 million in cash. This completed sale represents a sharp shift from the company’s previous cryptocurrency-focused treasury strategy, which had included over two million SOL—making it one of the largest corporate SOL holders among public companies in September.
SkyAI Sells 2 Million SOL as $201 Million Buyback Begins
By early October, SkyAI began unwinding its Solana position. On October 11, filings indicated it sold around one million SOL. Additional disclosures revealed its SOL reserves had dropped to about 600,000, then to 210,000 by October 14. As of October 16, the company confirmed it held no Solana, with the sales wrapped up by October 15 according to tender documents filed with the US Securities and Exchange Commission (SEC).
Previously, SkyAI had used institutional custodians and a Coinbase validator to manage its treasury. The company disclosed an average realized selling price of $107.51 per SOL, net of fees, for transactions completed prior to October 14. However, it clarified that this average does not represent the price achieved across the entire liquidation process.
The company’s pivot stands in stark contrast to other public digital asset strategies, as several crypto-related firms continue to increase their crypto reserves amid market volatility.
SkyAI’s complete sale of its SOL positions marks a rare move among publicly traded companies, as many peers continued to embrace digital assets despite price fluctuations.
Mini dictionary: Solana (SOL), a high-performance blockchain platform known for its rapid transaction speeds and low fees, has been a popular reserve asset for some tech-focused public companies, though it also carries high volatility risk.
$223.8 Million Cash Position Faces Shareholder Opposition
After its full exit from Solana, SkyAI announced a major cash tender offer to repurchase up to $201.3 million of its own shares and warrants at $3 per security. The buyback, which can cover up to 95% of each eligible class, is set to run until October 29 unless adjusted.
The company plans to finance this buyback entirely from its existing cash on hand, without additional debt. If fully executed, the buyback would leave SkyAI with a cash balance of about $22.5 million before accounting for transaction costs, resulting in a sizeable reduction in capital reserves.
Previously, SkyAI had set a condition requiring SOL to remain above $100 during the tender period. With its SOL holdings now liquidated, this stipulation has been removed.
| Item | Before Selloff | After Selloff |
|---|---|---|
| SOL Holdings | 2,000,000+ SOL | 0 |
| Cash Holdings | Lower (undisclosed) | $223.8 million |
| Share Buyback Maximum | N/A | $201.3 million |
The announcement has drawn criticism from Bastion Trading, an institutional shareholder that owns nearly 10% of SkyAI’s common stock. Bastion is advocating for a higher buyback price of no less than $3.50 per share, a review of the Solana sales, and changes to SkyAI’s board structure. The group also questioned whether the corporate actions sufficiently protect shareholder interests.
Bastion Trading has challenged the terms of the buyback, arguing for greater transparency regarding the SOL liquidation and demanding improved board oversight.
What SkyAI’s Exit Means for Solana Treasury Companies
SkyAI’s strategy shift comes as other public firms, such as Forward Industries, continue to increase their exposure to Solana despite substantial price swings. Forward Industries has previously reported unrealized losses from retaining SOL on the balance sheet, underlining the risks associated with large cryptocurrency reserves for publicly listed entities.
Differing from industry peers, SkyAI is transitioning toward an artificial intelligence-driven financial services platform, focusing on blockchain-enabled data products and digital financial solutions. The company has not indicated plans to resume investments in Solana or other cryptocurrencies as treasury assets.
This move follows a period when holding cryptocurrencies in corporate treasuries was promoted as a shareholder value proposition, despite examples such as Upexi registering significant losses tied to digital asset volatility.
