SkyAI has liquidated its entire Solana reserve and redirected most of its cash toward a tender offer for its own shares and warrants, ending a treasury strategy that made it one of the largest public-company holders of SOL only weeks earlier.
The company said it held approximately $223.8 million in cash as of Oct. 16 after completing the sale of all of its SOL tokens. SkyAI is offering $3 for each common share or warrant tendered, seeking to repurchase up to 95% of its outstanding shares. If the offer is fully subscribed, the company expects to retain roughly $22.5 million before transaction costs.
The reversal is unusually sharp. On Sept. 14, SkyAI said it held more than 2 million SOL and reaffirmed its Solana-focused treasury approach. By Oct. 11, when it first announced the buyback plan, the company had disclosed sales of about 1 million SOL. A subsequent filing with the U.S. Securities and Exchange Commission showed that about 600,000 SOL remained before the final liquidation.
SkyAI’s exit removes a large publicly disclosed holder from the Solana market and shifts the company’s immediate financial priorities toward returning cash to shareholders rather than holding a volatile digital-asset reserve.
Tender offer would absorb nearly all public equity
SkyAI’s proposed cash offer totals about $201.3 million and covers up to 48.3 million common shares along with more than 18 million warrants. The company said shareholders and warrant holders who participate would receive $3 per security under the stated terms.
At that level of participation, SkyAI would use almost 90% of the cash it reported on Oct. 16. The remaining balance would leave a much smaller pool for operating costs, platform development, legal expenses, and any future digital-asset purchases.
The company has said it intends to remain listed on Nasdaq after the tender offer closes. It did not say whether it plans to rebuild a SOL position once the repurchase is complete, nor did it provide a timetable for additional updates on its operating business.
SkyAI describes that business as a financial platform intended to combine stablecoin payment rails on Solana with artificial intelligence tools. Its tender-offer announcement focused on the share and warrant repurchase rather than explaining how the company will fund that strategy after deploying most of its available cash.
Sol sales occurred below the reported purchase cost
SkyAI’s disclosed sales suggest the treasury strategy produced a substantial loss on the tokens it sold. The company’s SOL liquidation during the first two weeks of October generated an average price of $107.51 per token, based on the figures provided in its disclosures. Its reported average acquisition cost was $190.44 per SOL.
The gap between those prices amounts to roughly $82.93 per token before considering staking income, transaction costs, taxes, or the precise timing of purchases and sales. The company previously generated about $12 million in income from staking its SOL holdings, according to the supplied figures, though that income would not necessarily offset the full decline in the value of a reserve that at one stage exceeded 2 million SOL.
The sales also accelerated as SkyAI moved toward the tender offer. The company had sold about half of its former reserve by Oct. 11, then disposed of the remaining balance by Oct. 16. Public blockchain records cited in the supplied information indicated that final batches were transferred to large trading desks on Oct. 12.
The company initially tied the buyback plan to a condition that SOL remain above $100. That requirement was later removed after SkyAI had eliminated its SOL holdings, meaning the tender offer no longer depends on the market price of the token that had previously formed the center of its treasury policy.
Major holder challenges sale process and buyback terms
Bastion Trading, which holds nearly 10% of SkyAI, has challenged both the token liquidation and the terms of the cash offer. The shareholder called for an independent review of the SOL sales and said it would not tender its holdings under the company’s proposed $3 price.
Bastion has sought a $3.50-per-share repurchase price, restrictions on insider participation, and the exclusion of warrants held by SkyAI’s strategic advisers. The firm’s objections place particular focus on whether executives, advisers, or related parties could receive preferential treatment in a transaction designed to reduce the public float dramatically.
SkyAI has not disclosed a response to Bastion’s request for an independent review in the material provided. The disagreement raises the prospect that a sizable shareholder could remain outside the tender offer even if other holders participate.
Shares of SkyAI, trading under the ticker SKYA, rose 4.5% to $2.77 on the day cited in the supplied market figures, leaving the stock below the proposed $3 tender price. The shares were up 35% year to date.
The difference between the market price and the tender price may reflect the mechanics of the offer rather than a straightforward arbitrage opportunity. SkyAI is seeking to repurchase only a specified amount of shares and warrants, so holders who tender could face proration if demand exceeds the offer’s capacity. Those who retain shares would also own stock in a company with a substantially altered balance sheet: no SOL reserve, far less cash, and an operating plan that remains only broadly defined.
SkyAI’s decision places its next phase under a different test than its former treasury strategy. After selling the asset reserve and committing most of the proceeds to the tender, the company will need to show how its Solana-based stablecoin and AI platform can operate with the capital left after the repurchase.
Explore how major treasuries manage SOL exposure in 2025—read this analysis on Ethereum and Solana performance now.
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