SkyAI, formerly Sharps Technology, has liquidated its entire Solana (SOL) treasury and initiated a tender offer to repurchase up to $201.3 million in shares and warrants. This move reverses the company’s previous cryptocurrency accumulation strategy, which began in August 2025 after raising more than $400 million through a private placement. By the end of 2025, SkyAI held approximately 2.08 million SOL with a cost basis of $403.1 million, resulting in significant unrealized losses as token prices declined.
According to a filing with the US Securities and Exchange Commission on Monday, the company held approximately $223.8 million in cash as of Oct. 16 following the sale of its SOL holdings. The new tender offer allows shareholders and warrant holders to sell their securities directly back to SkyAI at a fixed price, covering up to 95% of each class of outstanding shares and warrants. The buyback is funded entirely by cash on hand and is no longer tied to SOL’s price, a condition that had been part of the initial announcement on Oct. 11.
Despite the reversal of its treasury strategy, SkyAI stated it intends to continue developing a financial platform that combines stablecoin infrastructure on Solana with artificial intelligence. Market data indicates that SkyAI shares closed at $2.79 on Monday, rising 5.3% for the day. While the stock has gained approximately 65% over the past month, it remains down about 41% over the past year. The broader context includes substantial pressure on publicly traded Solana treasury companies, which faced more than $1.5 billion in combined unrealized losses by February 2026 due to falling token prices.
SkyAI’s decision to exit its Solana treasury position marks a definitive shift from speculative asset accumulation to capital preservation and shareholder return. By converting digital assets into cash and launching a massive buyback, the company prioritizes liquidity and balance sheet stability over holding volatile crypto reserves. This action reflects the severe impact of market downturns on firms that adopted aggressive treasury strategies, where unrealized losses eroded equity value and necessitated defensive financial maneuvers.
The separation of the buyback mechanism from SOL price fluctuations signals a strategic pivot toward traditional corporate finance tools while maintaining operational ties to the Solana ecosystem through its AI and stablecoin platform development. Investors should monitor how effectively SkyAI executes this tender offer and whether the retained cash reserves support its long-term technological roadmap without further dilution or debt. The move also highlights the growing divergence between crypto-holding entities and those seeking to stabilize their share prices through direct capital returns.
