Huoxing Finance reports that on October 19, SkyAI, formerly known as Sharps Technology, recently underwent a dramatic strategic shift. The company has liquidated its entire Solana (SOL) reserve to fund its share and warrant repurchase program, transitioning from being the fifth-largest Solana treasury holder to a zero-holding position. According to SkyAI’s statement released on Monday, as of October 16, the company held approximately $223.8 million in cash and had “completed the sale of all SOL.” Under this repurchase program, SkyAI proposed to repurchase 95% of its outstanding shares at $3 per share or per warrant. If fully subscribed, the repurchase would leave the company with approximately $22.5 million remaining, prior to related expenses. Additionally, since it no longer holds any SOL, the company has removed the original condition requiring SOL’s price to remain above $100 for the repurchase to proceed. This liquidation occurred rapidly and unexpectedly. On September 14, SkyAI had reaffirmed its Solana treasury strategy, stating it held over 2 million SOL. However, the repurchase announcement on October 11 revealed that approximately 1 million SOL had already been sold, and subsequent SEC filings showed its remaining balance was only about 600,000 SOL. This swift selling triggered strong dissatisfaction from Bastion Trading, a major shareholder holding nearly 10% of SkyAI’s shares, which called for an independent review and explicitly stated it would not participate in the repurchase under the current terms. Bastion demanded an increase in the repurchase price to $3.50 per share, restrictions on insiders, and exclusion of strategic advisor warrants from the repurchase. Despite liquidating its crypto assets, SkyAI continues to describe its business as “building a financial platform that integrates stablecoin rails on Solana with AI.” However, Monday’s announcement provided no indication of whether the company intends to rebuild its SOL treasury or offered any updates on the platform’s progress. The company only stated its intention to maintain its Nasdaq listing following the completion of the repurchase. As of the latest trading day, SkyAI’s stock (SKYA) rose 4.5% to $2.77 per share, up 35% year-to-date.
Former Top 5 SOL Treasury Firm SkyAI Sells Entire Solana Holdings for Share Buyback
MarsBitShare
Summary
Technical analysis for crypto suggests that shifting positions may improve the risk-to-reward ratio, as SkyAI has sold its entire Solana (SOL) treasury holdings to fund a stock and warrant buyback. As of October 16, the company held $223.8 million in cash following the sale of all SOL. The buyback proposal offers to repurchase 95% of outstanding shares and warrants at $3 each. SkyAI no longer requires SOL to remain above $100 for the buyback to proceed. Previously, on September 14, the company reaffirmed its SOL strategy; however, by October 11, it had already sold approximately 1 million SOL, leaving only 600,000 SOL, according to SEC filings. Major shareholder Bastion Trading criticized the move and demanded a higher price and additional restrictions. Despite the sale, SkyAI continues to describe its business as building a financial platform that integrates Solana’s stablecoin ecosystem with AI, though no updates on the platform or future SOL plans were provided.
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