SkyAI Liquidates Solana Treasury to Fund $201M Share Buyback
Former medical device firm pivots strategy by offloading SOL holdings for capital distribution.
1Strategic Treasury Pivot
SkyAI, formerly known as Sharps Technology, has officially liquidated its entire Solana treasury holdings. This move marks a complete reversal of the company's previous cryptocurrency accumulation strategy initiated in August 2025. The firm is now pivoting toward a capital distribution model, utilizing its available cash reserves to repurchase outstanding company securities.
2Tender Offer Details
The company launched a tender offer to repurchase up to $201.3 million in shares and warrants. This offer covers approximately 95% of each class of outstanding securities. Unlike initial plans announced on October 11, the buyback price is no longer tied to the market performance of the Solana token itself.
3Financial Position Overview
Following the liquidation of its SOL assets, SkyAI reported holding $223.8 million in cash as of October 16, 2026. This liquidity fully funds the current tender offer. The company intends to maintain its focus on developing a financial platform that integrates stablecoin infrastructure on the Solana network with artificial intelligence technologies.
4Historical Cost Basis
SkyAI entered the crypto market in August 2025 after raising $400 million through a private placement. By the end of 2025, the firm held 2.08 million SOL tokens with a cost basis of $403.1 million. This resulted in an average acquisition price of approximately $194 per token for the company's treasury.
5Unrealized Losses Impact
The company's annual financial disclosures revealed $153 million in unrealized losses on its SOL holdings. These losses were part of a broader trend where publicly traded companies holding Solana faced over $1.5 billion in combined unrealized losses by February 2026, driven by significant volatility and falling token prices throughout the year.
6Market Price Recovery
Solana prices experienced significant fluctuations, dropping to approximately $62 in June 2026 before recovering to trade near $104 by mid-October. Despite this recent recovery, the company's decision to liquidate suggests a shift away from holding volatile digital assets as a primary treasury strategy, prioritizing shareholder value through direct capital returns instead.
7Stock Performance Trends
SkyAI shares closed at $2.79 on Monday, reflecting a 5.3% daily increase. While the stock has gained roughly 65% over the past month, it remains down approximately 41% compared to its performance one year ago. Investors are currently evaluating the impact of the buyback program on the company's long-term equity valuation.
8Future Strategic Direction
By decoupling its buyback program from SOL price volatility, SkyAI aims to stabilize its financial operations. The firm remains committed to its core technological development goals, specifically the integration of AI and stablecoin infrastructure. This transition highlights the challenges faced by corporate entities attempting to balance digital asset exposure with traditional treasury.