Sky AI liquidates Solana holdings, launches $201.3 million securities buyback
Key Facts
Sky AI completed the sale of its entire Solana holdings on October 15, 2026, according to a tender offer document filed with the U.S. Securities and Exchange Commission. The company said its cash balance stood at about $223.8 million on October 16, after it had exited the cryptocurrency. The offer to buy shares and eligible warrants has a total value of about $201.3 million if fully subscribed, according to the company's disclosure. It set the base consideration at $3.00 in cash per share, allowing holders of the covered securities to sell them to the company. By Sky AI's calculation, the offer price represents about 0.95 times its net asset value.
The company had disclosed in an earlier update that it held about $204.6 million in cash on October 14, 2026, before completing the exit. The update showed it still held about 210,000 locked Solana tokens on that date. The average execution price for sales of liquid and locked tokens described in the asset update was $107.51 per token, net of fees. The initial announcement had made completion of the tender offer conditional on Solana remaining above $100 per token during the offer period. After selling its entire holdings, the company removed that condition, saying in its disclosure that the offer was "not conditioned on the price of Solana."
Financial disclosures show the size of the holdings before the exit, with the annual filing reporting a balance of 2,077,799 Solana tokens at the end of the fiscal year covered. Those holdings cost $403,063,288, according to the note on digital asset investments filed with the U.S. regulator. Their fair value in the same disclosure was $250,111,125, below their recorded cost. Sky AI had said in a statement dated September 14, 2026, that it still held more than 2 million Solana tokens as its primary treasury reserve asset. It added at the time that nearly all its tokens were staked with institutional validators to generate staking revenue.
The offer price faces opposition from Bastion Trading, which said it and its affiliates held about 9.99% of Sky AI's outstanding ordinary shares. Bastion called in its statement for the offer price to be raised to at least $3.50 from the price set by the company. Its request covered both shares and eligible warrants, according to the statement published through GlobeNewswire. The dissenting shareholder also demanded that the company fully disclose its Solana sales. It called for an independent review of those sales, alongside its demand for improved consideration for securities holders.
Against this backdrop, Sky AI was originally established as a medical device company, according to its quarterly report filed with the U.S. Securities and Exchange Commission. It subsequently announced a strategic shift toward developing a technology-driven financial platform as part of a new direction for its business. The announced shift included establishing an international operating headquarters in Hong Kong, according to the same quarterly report. Regarding proposals submitted to the company, the board announced its rejection of the latest unsolicited proposal from Forward Industries in the initial tender offer announcement. The board said its decision was based on the proposal undervaluing Sky AI.
The current offer seeks to purchase up to 95% of each covered class, including ordinary shares and pre-funded warrants, according to the disclosure form filed with the U.S. regulator. Eligible securities also include strategic adviser warrants, which are likewise subject to the target limit for each class. The company said in its initial announcement that the offer price was 65% above its share closing price on October 9, 2026. According to the offer document, the participation deadline falls one minute after 11:59 p.m. New York City time on October 29, 2026. That deadline remains subject to the offer being extended or terminated early, under the terms set out in the document.