Sold out. Not a single coin left.
SkyAI (formerly Sharps Technology), once the fifth-largest publicly traded company holding Solana, confirmed in a filing submitted to the SEC on Monday that it had liquidated its entire $SOL position. As of October 16, it had only about $223.8 million in cash on its books.
This round of “selling coins to buy back shares” moved extremely fast. In early October, the company began transferring SOL in bulk from its on-chain wallets to exchanges. On October 11, it announced the sale of about 1 million SOL and plans to launch a tender offer to buy back shares at $3 each. By October 16, the liquidation was complete and the buyback had officially begun.
The tender offer is capped at $201.3 million and covers up to 95% of the outstanding shares and warrants. It will be paid entirely in cash on hand and expires October 29. Notably, this buyback is no longer tied to the price of SOL—the company initially considered linking the repurchase price to the coin’s price, but ultimately dropped the idea.
Behind the numbers lies the brutal side of the digital asset treasury (DAT) model: SkyAI began accumulating coins after raising more than $400 million through a private placement in August last year. By year-end, it held about 2.08 million SOL at an average cost of roughly $194 per coin, with an unrealized loss of about $153 million. Solana briefly fell to around $62 this June, and the holdings were ultimately sold at an average price of about $107.51, locking in the loss.
I think this may be one of the most textbook examples this year of a “coin-denominated treasury” bowing out. It’s not that conviction wasn’t strong enough; it’s that the math is unforgiving. When the coins were bought, the stock price soared along with them. When the coin price halved, the stock was dragged down too. In the end, the company could only sell its coins to rescue its share price. SkyAI chose a textbook exit: sell everything, hold cash, buy back shares, and move close to winding down.
The company says it will continue developing stablecoin infrastructure and an AI platform on Solana. Its shares rose 5.3% to $2.79 at Monday’s close, up about 65% over the past month, but still down more than 40% from a year ago.
Who do you think will be the next treasury company in crypto to “liquidate and exit”?
#SkyAISellsAllSOLAndLaunchesCashTenderOffer
#SOL #TreasuryCompany
This is not investment advice. DYOR; trading involves risk.
SkyAI (formerly Sharps Technology), once the fifth-largest publicly traded company holding Solana, confirmed in a filing submitted to the SEC on Monday that it had liquidated its entire $SOL position. As of October 16, it had only about $223.8 million in cash on its books.
This round of “selling coins to buy back shares” moved extremely fast. In early October, the company began transferring SOL in bulk from its on-chain wallets to exchanges. On October 11, it announced the sale of about 1 million SOL and plans to launch a tender offer to buy back shares at $3 each. By October 16, the liquidation was complete and the buyback had officially begun.
The tender offer is capped at $201.3 million and covers up to 95% of the outstanding shares and warrants. It will be paid entirely in cash on hand and expires October 29. Notably, this buyback is no longer tied to the price of SOL—the company initially considered linking the repurchase price to the coin’s price, but ultimately dropped the idea.
Behind the numbers lies the brutal side of the digital asset treasury (DAT) model: SkyAI began accumulating coins after raising more than $400 million through a private placement in August last year. By year-end, it held about 2.08 million SOL at an average cost of roughly $194 per coin, with an unrealized loss of about $153 million. Solana briefly fell to around $62 this June, and the holdings were ultimately sold at an average price of about $107.51, locking in the loss.
I think this may be one of the most textbook examples this year of a “coin-denominated treasury” bowing out. It’s not that conviction wasn’t strong enough; it’s that the math is unforgiving. When the coins were bought, the stock price soared along with them. When the coin price halved, the stock was dragged down too. In the end, the company could only sell its coins to rescue its share price. SkyAI chose a textbook exit: sell everything, hold cash, buy back shares, and move close to winding down.
The company says it will continue developing stablecoin infrastructure and an AI platform on Solana. Its shares rose 5.3% to $2.79 at Monday’s close, up about 65% over the past month, but still down more than 40% from a year ago.
Who do you think will be the next treasury company in crypto to “liquidate and exit”?
#SkyAISellsAllSOLAndLaunchesCashTenderOffer
#SOL #TreasuryCompany
This is not investment advice. DYOR; trading involves risk.