SkyAI Sells Half Its SOL Treasury, Launches $201 Million Share Buyback

Half a Solana treasury becomes a stock buyback

SkyAI, a Nasdaq-listed company, announced on October 11 that it sold approximately 1 million SOL — half of its Solana holdings — and is preparing a cash tender offer of up to about $201 million to repurchase most of its common stock and eligible warrants.

The proposed offer pays $3 per share or eligible warrant and targets up to 95% of each covered class. SkyAI said the $3 price represents a 65% premium to its October 9 closing share price. The company plans to fund the purchases with existing cash and proceeds from the SOL sales.

Key numbers

• SkyAI sold roughly 1 million SOL, leaving approximately 1 million SOL remaining.
• The tender offer covers up to 46.37 million common shares and about 20.72 million warrants.
• SkyAI's June 30 quarterly filing reported 2,003,676 SOL with an aggregate accounting cost basis of $381.6 million, giving a historical average of about $190.44 per SOL.
• The announcement did not disclose the new sales' proceeds, execution prices, or realized gain or loss.

From staking rewards to selling tokens

Less than a month earlier, on September 14, SkyAI had defended its treasury strategy, saying it held more than 2 million SOL, nearly all staked with institutional validators to earn staking rewards. Staking is a process of locking up cryptocurrency in a blockchain network to earn a return, similar to interest on a savings account.

The sharp reduction in the company's digital asset treasury came the same month it rejected an acquisition proposal from Forward Industries, another Solana treasury company. SkyAI said Forward's offer undervalued the company. Forward's September 15 proposal had offered shareholders cash, Forward shares, or a combination, tied to a fixed exchange ratio of 0.306 Forward shares for each SkyAI share.

Forward's own dashboard, as of September 30, showed its fully diluted market value at 0.946 times its reported net asset value, based on preliminary, unaudited figures.

Conditions that could block the deal

The offer has not yet begun. SkyAI expects to launch it around October 15 and keep it open for 10 business days, unless it is extended or terminated early. Formal tender materials are expected to be filed with the U.S. Securities and Exchange Commission by October 15.

Expected conditions for the offer to proceed include at least 50% of each eligible class being tendered and not withdrawn, SOL's closing price remaining above $100 throughout the offer period, and completion of the offer not causing Nasdaq delisting or deregistration. SkyAI said it may waive those conditions.

A possible extra transfer on-chain

Separately, blockchain analyst Ember reported on October 12 that a wallet associated with SkyAI transferred 211,623 SOL to Coinbase Prime, a wholesale exchange service. A transfer to an exchange alone does not confirm that an additional sale was executed.

SkyAI says it is not closing down

The company stated it intends to continue building an AI financial platform after the repurchase. The planned offer covers the cash pre-funded, cryptocurrency pre-funded, and strategic advisor classes of shares and warrants.

What is confirmed

• SkyAI sold approximately 1 million SOL and currently holds about 1 million SOL.
• The company proposed a $3-per-share tender offer for up to 95% of eligible shares and warrants, worth up to about $201 million.
• The $3 price was described by SkyAI as a 65% premium to the October 9 closing price.
• SkyAI rejected Forward Industries' acquisition proposal, saying it undervalued the company.
• Formal tender materials are expected at the SEC by October 15.

What is still unclear

• The tender announcement did not disclose the sale proceeds, the price at which the sold SOL was executed, or the realized gain or loss.
• It is unknown whether the additional 211,623 SOL transfer to Coinbase Prime results in another sale.
• The offer has conditions — including SOL staying above $100 — that could prevent completion.

Sources

• The Defiant