SkyAI sells off entire Solana treasury as it launches $201 million buyback

SkyAI, formerly Sharps Technology Inc., has gone from being the fifth-largest Solana treasury company to holding no SOL after selling its entire reserve to fund a share and warrant buyback.

The company said Monday that it now holds approximately $223.8 million in cash as of Oct. 16 and had "completed the sale of all of its SOL." 

If buybacks are fully subscribed, SkyAI would be left with roughly $22.5 million before costs.

On Sept. 14, SkyAI reaffirmed its commitment to its Solana treasury strategy while noting it held more than 2 million SOL. At the time, SkyAI had the fifth-largest holdings of all publicly traded Solana treasury companies.

However, its Oct. 11 buyback announcement disclosed sales of roughly 1 million SOL, while a subsequent SEC filing put the remaining balance at around 600,000 SOL.

This rapid drawdown of its SOL holdings led to Bastion Trading, which owns nearly 10% of SkyAI, calling for an independent review and saying it would not be participating in the buyback under the proposed conditions.

SkyAI is offering $3 per share or warrant to buy back 95% of outstanding shares. The company ended up dropping a proposed condition that required SOL to remain above $100, because it no longer holds any.

Bastion wanted a price of $3.50 per share, restrictions on insiders, and for strategic advisor warrants to be excluded.

SkyAI still describes its business as "building a financial platform that will combine stablecoin rails on Solana with AI." Monday's announcement does not say whether the company plans to rebuild its SOL treasury or provide any updates on the platform. It said it plans to stay listed on the Nasdaq after the buybacks are complete.

The Block reached out to SkyAI for comment, but did not immediately receive a reply.

SkyAI shares (SKYA) are up 4.5% on the day to $2.77, a 35% gain year to date.