Nasdaq-listed company SkyAI (stock code: SKYA, formerly known as Sharps Technology) has sold all of its Solana ( SOL ) reserves and accumulated approximately $223.8 million in cash, reversing its previous crypto investment strategy of holding over 2 million SOL tokens.
This announcement signifies that the company has completely withdrawn from its previous Solana treasury position, which stands in sharp contrast to those listed crypto companies that continue to increase their holdings of digital assets.
SkyAI Sells 2 million SOL, $201.3 million repurchase initiative launched
SkyAI held over 2 million SOL in September, ranking as one of the largest holders of Solana among listed companies. The company has previously expanded its treasury business through institutional custody arrangements and Coinbase verification nodes.
However, this strategy changed rapidly in October.
On October 11th, SkyAI disclosed that they had sold approximately 1 million SOL. Subsequent documents showed that their remaining holdings had dropped to about 600,000 tokens; another update indicated that as of October 14th, the company only held 210,000 SOL and $204.6 million in cash.
The company has now completed its liquidation and confirmed that as of October 16th, it no longer holds SOL. The tender offer document submitted to the U.S. Securities and Exchange Commission (SEC) indicates that the completion date of the sale is October 15th.
As previously disclosed by SkyAI, in the transactions completed before the update on October 14th, the average selling price of its SOL was $107.51 per unit, after deducting fees. This price should not be considered as the average transaction price for its full liquidation of the treasury.
The company plans to rely solely on its existing cash to fund the tender offer of up to $201.3 million and will not take on any new loans.
SkyAI also revoked the previous requirement that SOL must be maintained above $100 during the repurchase period, and explained that the company no longer holds that cryptocurrency.
This offer is still subject to controversy. Bastion Trading, which holds approximately 9.99% of the ordinary shares of SkyAI, demands a higher repurchase price of at least $3.50 per share, and requests an independent review of the SOL transaction, as well as adjustments to the company's board of directors.
SkyAI's exit from Solana Treasury Company: Its Significance
The decision of SkyAI stands in contrast to that of other SOL holders, including Forward Industries which continued to increase its Solana holdings during previous periods of significant volatility.
Forward The previous unmet losses indicate that exposing the balance sheet to SOL could potentially amplify the financial risks of the listed company.
Unlike these companies, SkyAI is now transitioning to a financial platform driven by artificial intelligence, aimed at combining blockchain-based data with financial services. The company has not yet announced any plans to rebuild the SOL treasury.
Marcus Hale
Marcus Hale is a cryptocurrency and financial markets contributor who reports on topics such as Bitcoin, Ethereum, digital assets, regulation, ETF, and institutional adoption. His work focuses on factors that may impact market developments, investor trends, and the broader forces shaping the crypto economy.
