Nasdaq-Listed SkyAI Dumps Almost All Its Solana After Holding 2 Million SOL to Buy Back Its Own Shares

Key takeaways

• SkyAI cuts Solana reserves by nearly 90%
• Company plans $3 tender offer for shareholders
• Major investor challenges treasury sales and buyback terms

Nasdaq-listed SkyAI (SKYA) is preparing to exit its Solana treasury strategy after selling nearly 90% of its SOL holdings, an unusual reversal for a company that previously positioned cryptocurrency accumulation as a central part of its business.

The company disclosed on October 14 that it held approximately 210,000 locked SOL and $204.6 million in cash, compared with more than 2 million SOL reported in September. It now plans to use its available assets to repurchase shares and warrants for $3 apiece.

According to SkyAI's announcement, the company expects to hold no SOL following completion of its proposed tender offer.

SkyAI Sells Nearly 90% of Solana Treasury

SkyAI's rapid liquidation represents a striking reversal of the corporate cryptocurrency treasury model, which typically emphasizes accumulating digital assets and increasing token exposure per share.

The company previously held more than 2 million SOL, making it a notable participant among publicly traded Solana treasury companies pursuing long-term cryptocurrency accumulation strategies.

However, SkyAI has progressively reduced its exposure throughout October.

The company announced on October 11 that it had sold approximately 1 million SOL and still held roughly another million. A subsequent regulatory filing disclosed approximately 600,000 remaining tokens, before the October 14 update reduced that figure to 210,000.

Reporting Date Disclosed SOL Holdings September 14 More than 2 million SOL October 11 Approximately 1 million SOL October 13 filing Approximately 600,000 SOL October 14 Approximately 210,000 SOL

Source: SkyAI corporate announcements and SEC filings. Figures are rounded reporting snapshots.

SkyAI said its recent sales of liquid and locked SOL were executed through BitGo, Anchorage and Coinbase at an average net price of $107.51 per token.

SkyAI Plans $3 Share Buyback as Investor Challenges Sales

SkyAI intends to offer $3 in cash for up to 95% of each eligible class of outstanding shares and warrants.

The price represents a 65% premium to the company's October 9 closing share price and more than double its 60-day volume-weighted average.

However, the proposal has encountered opposition from Bastion Trading, which owns approximately 9.99% of SkyAI's common stock.

In an October 14 statement, Bastion questioned the rapid reduction in SOL holdings and requested detailed disclosures covering sale dates, prices, proceeds and board authorization.

The investor also demanded that SkyAI raise its tender price to at least $3.50 and reconsider the treatment of certain advisor warrants.

The dispute reflects a broader problem for digital asset treasury businesses: investors may value the company at less than its underlying crypto holdings, creating pressure to repurchase shares rather than accumulate additional tokens.

Other firms have taken a different approach. Forward Industries has combined SOL accumulation with selective stock repurchases intended to increase cryptocurrency exposure per share.

What SkyAI's Exit Means for Solana Treasury Companies

SkyAI's decision comes amid growing pressure on businesses holding cryptocurrencies as corporate reserves.

Sharp changes in SOL prices can significantly affect treasury valuations, while discounts between stock prices and underlying asset values may create conflicts over capital allocation.

Some operators continue accumulating despite market volatility, while others have faced substantial treasury losses as cryptocurrency prices retreated from previous highs.

SkyAI's tender offer is scheduled to expire on October 29 unless extended or terminated earlier. Completion remains subject to the offer's conditions.

The development does not establish that Solana treasury strategies are universally failing. However, it illustrates how quickly a cryptocurrency-focused company's priorities can shift when shareholders begin demanding returns in cash rather than additional tokens.