Former Fifth Largest SOL Treasury Company Undergoes Radical Transformation, Liquidates SOL Holdings

On October 19, SkyAI, formerly known as Sharps Technology, underwent a radical strategic shift. The company has liquidated all of its Solana (SOL) reserves to fund its stock and warrant buyback plan, transitioning from being the fifth largest Solana treasury company to a zero-holding status.

According to a statement released by SkyAI on Monday, as of October 16, the company held approximately $223.8 million in cash and has "completed the sale of all SOL." In this buyback plan, SkyAI proposed to repurchase 95% of its outstanding shares at a price of $3 per share or warrant. If the buyback is fully subscribed, the company will have approximately $22.5 million remaining before deducting related expenses. Additionally, since it no longer holds SOL, the company has canceled the original buyback condition that required the SOL price to remain above $100.

This liquidation move appears to be quite swift and sudden. Just on September 14, SkyAI reaffirmed its Solana treasury strategy, claiming to hold over 2 million SOL. However, the buyback announcement on October 11 revealed that it had sold approximately 1 million SOL, and subsequent SEC filings indicated that its remaining balance was only about 600,000 SOL. This rapid sell-off has sparked strong dissatisfaction from Bastion Trading, a major shareholder holding nearly 10% of SkyAI's shares, which has called for an independent review and explicitly stated it would not participate in the buyback under the current proposed terms. Bastion has demanded an increase in the buyback price to $3.50 per share, imposed restrictions on insiders, and excluded the warrants of strategic advisors from the buyback.

Despite liquidating its crypto assets, SkyAI continues to describe its business as "building a financial platform that combines stablecoin tracks on Solana with AI," but Monday's announcement did not clarify whether the company intends to rebuild its SOL treasury or provide any updates on the platform's progress. The company only stated that it plans to maintain its listing status on Nasdaq after the buyback is completed. As of the latest trading day, SkyAI (SKYA) shares rose 4.5% to $2.77, with a year-to-date increase of 35%.

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