By SkyAI, the Nasdaq-listed company formerly known as Sharps Technology, has liquidated its entire Solana treasury of more than 2 million SOL, reversing a cryptocurrency investment strategy it publicly reaffirmed just four days before its September annual shareholder meeting.
The company confirmed on October 19, 2026, that it held approximately $223.8 million in cash and no remaining SOL as of October 16. The liquidation supports a tender offer to repurchase up to 95% of its outstanding common shares and several warrant classes for approximately $201.3 million if fully subscribed.
The reversal has intensified a dispute with major shareholder Bastion Trading, which has questioned the timing, transparency and authorization of the cryptocurrency sales.
On September 14, SkyAI had reiterated its commitment to holding Solana as its primary treasury asset, reporting more than 2 million SOL and no outstanding debt. The statement preceded its September 18 annual meeting, at which shareholders were asked to support the company’s board and equity incentive plan.
From 2 Million SOL to Zero in One Month
SkyAI began publicly disclosing substantial treasury reductions in October. Its October 11 announcement revealed that approximately 1 million SOL had already been sold, representing roughly half its holdings.
A subsequent SEC filing on October 13 showed only approximately 600,000 SOL remaining, indicating that at least 70% of the original treasury had been liquidated. By October 14, SkyAI reported approximately $204.6 million in cash and 210,000 locked SOL.
The company disclosed that recent sales of liquid and locked tokens had achieved an average price of $107.51 per SOL, net of fees, through transactions involving BitGo, Anchorage and Coinbase. Its tender-offer documentation subsequently stated that the final SOL holdings were sold on October 15.
SkyAI’s October 19 announcement confirmed that its cash position had reached $223.8 million by October 16, with no cryptocurrency remaining. The company had previously generated staking income from its SOL reserves, reporting $2.3 million in net staking revenue during the second quarter of 2026.
Liquidating the treasury eliminates that direct staking exposure and changes the financial profile of a company that had promoted cryptocurrency holdings as central to its strategy.
$201 Million Buyback Fuels Shareholder Dispute
SkyAI’s cash tender offer commenced on October 16 at $3 per share or eligible warrant. The offer covers up to 48.3 million common shares and approximately 18.8 million warrants across three classes. It is scheduled to expire on October 29, subject to extension or earlier termination.
The $3 purchase price represented a 65% premium to SkyAI’s October 9 closing share price and approximately 0.95 times its reported net cash asset value. If fully subscribed, the transaction would leave approximately $22.5 million in cash before fees and expenses.
SkyAI also removed an earlier condition requiring SOL to remain above $100 because the company no longer holds the cryptocurrency. Bastion Trading, which owns nearly 10% of SkyAI, has criticized the liquidation and requested a detailed accounting of sale dates, quantities, prices and proceeds. The shareholder has also sought a higher tender price of $3.50, restrictions involving insiders and changes to the board.
Those demands represent shareholder allegations and proposals, not findings of securities violations. SkyAI maintains that the buyback offers investors liquidity while allowing the company to pursue its planned artificial intelligence-based financial platform.
The company has not announced plans to rebuild its Solana treasury. The episode highlights a central risk for publicly traded cryptocurrency treasury companies: substantial asset disposals can rapidly alter their investment proposition, particularly when undertaken shortly after management reaffirms a long-term holding strategy.
Attention now turns to shareholder participation in the tender offer and whether SkyAI provides further disclosure addressing Bastion’s concerns.