Key Points

• SkyAI reduces the reserves of Solana by nearly 90%
• The company plans to launch a tender offer at $3 per share.
• Major investors question the treasury sale and repurchase terms

Nasdaq-listed company SkyAI ( SKYA ) is preparing to exit its Solana treasury strategy. Previously, the company sold nearly 90% of its SOL holdings, which represents an unusual reversal for a company that once positioned cryptocurrency accumulation as a core part of its business.

On October 14, the company disclosed that it held approximately 210,000 locked SOL tokens and $204.6 million in cash. In September, its holdings of SOL exceeded 2 million tokens. Now, SkyAI plans to utilize its available assets to repurchase shares and warrants at a price of $3 per share.

According to the announcement of SkyAI, the company expects not to hold SOL anymore after the completion of the proposed tender offer.

SkyAI sells nearly 90% of the Solana treasury

SkyAI A rapid liquidation marks a significant reversal in the corporate cryptocurrency treasury model, which typically emphasizes the accumulation of digital assets and an increase in the token exposure per share.

The company previously held over 2 million SOL, and was an important participant in the publicly traded Solana treasury companies, which have been advancing a long-term cryptocurrency accumulation strategy.

However, SkyAI continued to reduce its exposure throughout October.

On October 11, the company announced that it had sold approximately 1 million SOL tokens and still held about another 1 million. A subsequent regulatory document revealed that the remaining tokens were around 600,000, while an update on October 14 reduced this number to 210,000.

Source: SkyAI company announcements and documents from the U.S. Securities and Exchange Commission (SEC). The data is a rounded report snapshot.

SkyAI indicates that the liquidity and locked SOL recently sold were executed through BitGo, Anchorage, and Coinbase, with an average net price of $107.51 per piece.

SkyAI plans to repurchase at $3 per share, investors question the sale behavior

SkyAI intends to offer up to $3 per share in cash for each class of eligible issued shares and warrants, with a maximum repurchase ratio of 95%.

This price is 65% higher than the company's closing price on October 9th, and it also exceeds more than twice the weighted average price of its 60-day trading volume.

However, this proposal met with opposition from Bastion Trading. The latter holds approximately 9.99% of the ordinary shares of SkyAI.

In a statement on October 14, Bastion questioned the company's rapid reduction of its holdings in SOL and demanded the disclosure of detailed information, including the sale date, price, proceeds, and the authorization from the board of directors.

The investor also requested that SkyAI raise the offer price to at least $3.50 per share and reconsider the treatment of certain advisory warrants.

This controversy reflects a broader issue faced by digital asset treasury businesses: investors may value a company at a lower level than its underlying crypto assets, putting pressure on capital allocation. This encourages companies to repurchase their own shares rather than continuing to increase their holdings of tokens.

Other companies have adopted different approaches. Forward Industries combines SOL accumulation with selective stock repurchases, aiming to increase the cryptocurrency exposure per share.

SkyAI The Significance of Exiting the Treasury Company with Solana

The decision by SkyAI comes at a time when companies holding cryptocurrencies as corporate reserves are facing increasing pressure.

SOL Sharp changes in prices can significantly affect the valuation of the treasury, and the discount between stock prices and the value of the underlying assets may lead to conflicts in capital allocation.

Some operators continued to increase their holdings during market fluctuations, while others suffered significant financial losses due to the decline in cryptocurrency prices from previous highs.

The tender offer plan for SkyAI is scheduled to expire on October 29th, unless it is extended or terminated in advance. Whether the transaction can be completed still depends on the terms of the tender offer.

This progress does not mean that the Solana treasury strategy has been universally unsuccessful. However, it indicates that when shareholders begin to demand returns in cash rather than more tokens, the priorities of a company centered around cryptocurrencies can change rapidly.