SkyAI sold every SOL it held and is spending up to $201M buying back its own stock

SkyAI, the Nasdaq-listed Solana treasury company that used to be Sharps Technology, has sold every SOL token it owned and now holds only cash. In a release filed with the SEC on 19 October 2026, the company said it held about $223.8 million in cash and had completed the sale of all of its SOL. Its tender offer, which opened on 16 October, will spend up to about $201.3 million buying back as much as 95% of its shares and warrants at $3.00 each, in cash, until 29 October.

On 14 September SkyAI said it held more than 2 million SOL, worth about $207 million at the time, according to The Block. About a month later the balance is zero, and most of the cash is earmarked to buy back stock. It is the crypto treasury flywheel run backwards: instead of selling shares to buy tokens, SkyAI sold the tokens to buy back shares.

Not every shareholder is on board. Bastion Trading, which holds close to 10% of the company, said on 14 October that it will not tender on the current terms and wants full disclosure of the sales, The Block reported. And the board has already turned down an all-stock bid from Forward Industries, which The Block described in July as the largest listed Solana treasury company.

From more than 2 million SOL to none in about a month

The sales came in quick steps, and the company disclosed them in pieces. When it announced its plan to launch a tender offer on Sunday 11 October, SkyAI said it had recently sold about 1 million SOL, roughly half its holdings, and still owned about 1 million. A Form 8-K filed on 13 October put the remaining balance at about 600,000 SOL and said the company had about 80% of the cash it needed for the offer. The Block counted that as a cut of some 70% in under a month. The filings seen by Coindaro do not explain the gap of about 400,000 SOL between those two figures.

On 14 October, a second release gave the first price. SkyAI said it had about $204.6 million in cash and about 210,000 locked SOL left, after selling liquid and locked tokens “over the last few days” at an average of $107.51 per SOL, net of fees. The sales were spread between BitGo, Anchorage and Coinbase, the company said, adding: “The Company intends to continue selling its remaining SOL holdings.”

It did. The Offer to Purchase, the legal document behind the tender, is dated 15 October and was filed with the SEC the next day. It states that the company “completed the sale of all of our SOL” on that day and holds no digital assets, with about $223.8 million in cash as of the same date. The 19 October release repeats the cash figure, dated 16 October.

What has not been published is the full ledger: the date, size and price of each sale before 14 October, and the total proceeds. The only disclosed price is the $107.51 average for the batch sold in the days before 14 October. For scale, SOL traded near $104.4 at 16:22 UTC on 19 October, according to Coindaro market data, about 3% below that average.

A Solana treasury company that started as a syringe maker

Sharps Technology made medical devices such as syringes before it turned itself into a SOL holder. On 25 August 2025 it announced a private placement of more than $400 million, with ParaFi Capital and Pantera Capital among the investors, The Block reported at the time; the deal was due to close on 28 August.

In October 2025 Sharps announced a $100 million share repurchase programme. On 27 May 2026 the company announced a new name, new tickers and a “strategic transformation” away from its legacy business toward a technology-driven financial platform, according to the Offer to Purchase.

Shareholders did not warm to the board. At a shareholder vote in September, all five directors received more withhold votes than votes in favour, The Block reported, but kept their seats because the ballot offered no way to vote them out.

What the Offer to Purchase gives as reasons for the $3 tender

The press releases list figures, not reasons; the Offer to Purchase says more. Approving the offer on 11 October, the board found it to be “a prudent use of our existing cash available and other financial resources” and a suitable way to return capital to holders who “seek liquidity under current market conditions”. Holders who stay in would, in the board’s words, “share in a higher portion of our future potential”.

Among the factors the board weighed: the premium, equal terms for every holder of a class, a way for large holders to sell without pushing the price down, and the fact that the offer “is funded from cash on hand, including the proceeds of sales of our SOL, and does not require any borrowing”. It set $3.00 “after considering our current financial condition and the limited opportunities for liquidity” for holders, the document says.

That $3.00 is 65% above the $1.82 close of 9 October, the last trading day before the announcement, and more than 100% above the 60-day volume-weighted average price. It is also slightly below the cash the company holds. SkyAI puts the multiple of net asset value (mNAV) at about 0.95x: 70,618,282 shares and warrants times $3.00, divided by $223.8 million of cash.

Our reading: the discount did the arithmetic

SkyAI does not say it sold its SOL because its stock traded far below its holdings. That is Coindaro’s inference from the filings, not a company statement. At the 9 October close of $1.82, the 70.6 million shares and warrants were worth about $129 million, while the SOL alone had been worth about $207 million in mid-September. Buying shares back below their cash value adds net assets per remaining share, and selling the tokens is what pays for it.

By our arithmetic, cash per share and warrant is about $3.17 ($223.8 million divided by 70.6 million), so even a 65% premium leaves the price under the cash figure. At $2.77, the SKYA price The Block reported in its article published at 15:28 UTC on 19 October (up 4.5% on the day), the whole company was valued at about $196 million on a fully diluted basis, close to the $201.3 million maximum the tender can spend.

The terms: 95% per class, 50% minimums, 29 October deadline

The offer covers four classes: up to 48,311,489 common shares, 4,880,734 cash pre-funded warrants, 9,939,850 cryptocurrency pre-funded warrants and 3,955,293 strategic warrants, in each case 95% of the class. Pre-funded warrants are shares paid for in advance and converted for $0.0001; holders can tender them directly at $3.00 less that exercise price, without converting first.

Each class has its own minimum. The offer for shares needs at least 50% of the shares sought to be tendered; the two pre-funded warrant classes are counted together; the strategic warrants stand alone. If more than 95% of a class comes in, purchases are prorated, and SkyAI may take up to 2% more of a class without extending. Tenders can be withdrawn until expiry, one minute after 23:59 New York time on 29 October. Payment follows “promptly” in cash, and preliminary results are due the next business day.

The condition first announced on 11 October that SOL stay above $100 throughout the offer period is gone. “Because the Company no longer holds any SOL, the Offer is not conditioned on the price of SOL,” the 19 October release says.

Holders outside the US should note that SkyAI says it will treat payments to non-US holders as dividends for withholding purposes, which means 30% of the gross proceeds is withheld unless the holder files an IRS Form W-8 showing a lower rate. Brokers may set an earlier deadline. The board approved the offer but, like the company and its agent MacKenzie Partners, makes no recommendation on whether to tender.

If the offer is fully taken up, about 2.54 million shares would remain, plus warrants for about 988,000 more, and about $22.5 million of cash before costs, by The Block’s count. The company says it intends to stay listed on the Nasdaq Capital Market and to use what is left “to develop and launch our agentic AI financial platform”, pay its expenses and meet existing obligations. It has also set up an operational headquarters in Hong Kong.

Bastion refuses to tender, and Forward Industries’ bid was turned down

Bastion Trading, based in the British Virgin Islands, reported 1,345,417 shares plus pre-funded and stapled warrants in a Schedule 13G/A filed in August, with warrant terms that block any exercise taking it above 9.99% of the common stock, according to the ownership table in the Offer to Purchase. On 14 October it said it would not tender. According to The Block, Bastion called the sales a “fundamental departure” from the treasury strategy and asked SkyAI to disclose the dates, quantities, prices and proceeds of every SOL sale and how the sales were approved, to raise the price to at least $3.50, to exclude the strategic advisor warrants from the offer and to overhaul the board.

The warrant point is personal. Those warrants were granted to a company controlled by the brother of SkyAI’s chief investment officer, The Block reported. The Offer to Purchase lists 4,163,467 strategic warrants outstanding and does not name the holder. Coindaro found no public reply from SkyAI to Bastion, and The Block said on 19 October that the company had not immediately answered its request for comment.

The other pressure came from a rival. On 11 October, the board said a special committee of independent directors had reviewed Forward Industries’ latest unsolicited, non-binding proposal, an exchange of 0.306 Forward shares for each SkyAI share. The board unanimously decided that the offer, “with no certainty of timing or value undervalues SkyAI”, and walked away. Forward, which held more than 7.55 million SOL on 1 July according to The Block, had disclosed in June that it made all-stock bids for three rival Solana treasury firms, CoinMarketCap Academy reported.

Why Solana treasury companies trade below their tokens

A Solana treasury company is a listed firm whose main asset is SOL bought with shareholders’ money. The model works while the stock trades above the tokens per share, a ratio called mNAV (market value over net asset value). Above 1, each new share sold buys more SOL than it dilutes. Below 1, the same issuance destroys value for existing holders, and the logic flips: a company that buys back cheap stock with its tokens raises the asset value per remaining share.

SkyAI is not the first to follow that logic. In October 2025, the ether treasury firm ETHZilla sold about $40 million of ETH to fund buybacks under a $250 million authorisation, saying it would continue while its shares traded at a discount to net asset value, The Block reported. Forward Industries said in July that it kept buying back stock whenever its shares traded below an mNAV of 1, according to The Block. Bitcoin’s largest holder faces the same question from another angle: Strategy now spends more on buybacks of its STRC preferred stock than on bitcoin, and treasury companies also face an MSCI rule that could drop them from global indexes from 30 November.

SkyAI went further than trimming: it sold everything, and what is left is a plan for an AI finance platform on Solana stablecoin rails, funded by whatever cash the tender does not use.

What the sale means for SOL

The selling is done, which limits any further direct effect. Roughly 2 million SOL went to market in about a month. The company named BitGo, Anchorage and Coinbase for the batch sold before 14 October; the earlier sales have not been detailed. SOL slipped 4.24% over the seven days to 16:22 UTC on 19 October, Coindaro market data show, and nothing in the filings ties a given day’s price to SkyAI’s orders.

The longer-term point is about demand. Treasury companies raised money in 2025 to buy Solana (SOL) and hold it. One that converts to cash removes a long-term holder and shows the others a way out if their own discounts persist.

What to watch before and after 29 October

The first test is the count. Each minimum is 50% of the securities sought, and Bastion has said it will stay out on these terms. SkyAI can extend the offer, amend it or let it lapse if a minimum is not met; changes are filed with the SEC as Schedule TO amendments.

Several questions remain open: the full record of the SOL sales that Bastion demands, the reason for the 400,000 SOL gap, whether Forward or anyone else comes back with a new proposal, and what an AI finance platform with about $22.5 million of starting cash will look like. On the network side, Solana activates its Alpenglow consensus upgrade on 21 October, a separate event that will not change SkyAI’s position, since it no longer holds the token.

This is not investment advice; the full terms are in the Offer to Purchase filed with the SEC.