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SkyAI, formerly Sharps Technology, has sold its entire Solana treasury to fund a $201 million buyback of shares and warrants. The company said it held approximately $223.8 million in cash as of Oct. 16 and had completed the sale of all its SOL. If fully subscribed, the buyback would leave roughly $22.5 million before costs.
Why it matters
The move reverses SkyAI's recently reaffirmed treasury strategy. On Sept. 14, the company said it held more than 2 million SOL and ranked as the fifth-largest Solana treasury company among publicly traded firms. An Oct. 11 announcement disclosed sales of about 1 million SOL, while a later SEC filing put the remaining balance at approximately 600,000 SOL.
The rapid drawdown has triggered a governance dispute. Bastion Trading, which owns nearly 10% of SkyAI, called for an independent review and said it would not participate in the buyback under the proposed terms. Bastion sought a $3.50 price, restrictions on insiders and the exclusion of strategic advisor warrants. SkyAI is offering $3 per share or warrant for 95% of outstanding shares and dropped a condition requiring SOL to stay above $100 after eliminating its holdings.
Market impact
SkyAI still describes its business as building a financial platform combining stablecoin rails on Solana with AI, but the announcement did not say whether it plans to rebuild its SOL treasury or provide a timeline for the platform. The company said it intends to remain listed on Nasdaq after the buybacks.
Shares were up 4.5% at $2.77, bringing the year-to-date gain to 35%. The immediate market response contrasts with the strategic shift: SkyAI is returning capital while abandoning the treasury position that had made it a notable public Solana holder.
Frequently asked questions
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How much SOL did SkyAI sell?
SkyAI said it completed the sale of all its SOL. The company had held more than 2 million SOL on Sept. 14, while a later filing showed about 600,000 SOL remained before the final sale.
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What is SkyAI's buyback offering?
SkyAI is offering $3 per share or warrant to buy back 95% of its outstanding shares. If fully subscribed, the company expects to retain roughly $22.5 million before costs.
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Why is Bastion Trading challenging the buyback?
Bastion Trading, which owns nearly 10% of SkyAI, called for an independent review and said it would not participate under the proposed terms. It wants $3.50 per share, insider restrictions and strategic advisor warrants excluded.
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What happened to SkyAI's Solana treasury strategy?
SkyAI reaffirmed the strategy on Sept. 14 but has since sold its entire SOL reserve. The company did not provide an update on whether it plans to rebuild the treasury.
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What is SkyAI planning to build after the sale?
SkyAI still describes its business as a financial platform combining stablecoin rails on Solana with AI. It plans to remain listed on Nasdaq after the buybacks are complete.
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