Solana Treasury Firm SkyAI Plans $201M Share Buyback Following SOL Sale

SkyAI intends to repurchase up to 95% of its outstanding shares and warrants at $3 apiece, tapping into liquid cash alongside funds raised from its solana sales. This strategic pivot was executed after the company unloaded nearly half of its SOL reserves and turned down an uninvited, all-stock acquisition proposal from Forward Industries.

SkyAI Offers $3 Per Share to Buy Back 95% of Shares#

SkyAI is mapping out one of the boldest capital-return initiatives ever attempted by a crypto treasury firm.

The Nasdaq-traded company expects to initiate a $3-a-share cash buyback around Oct. 15, targeting as much as 95% of its common equity along with multiple tranches of pre-funded and advisor warrants.

A maximum purchase ceiling of roughly $201 million has been set for the transaction.

Priced at $3, the offer delivers a 65% markup over SkyAI’s Oct. 9 close and exceeds twice its 60-day volume-weighted average price, as disclosed by the firm.

SkyAI Sells SOL Holdings to Finance Its Share Buyback Offer#

What stands out most about the plan is the specific manner in which SkyAI intends to fund it.

The firm noted that buybacks will be covered using existing cash reserves and revenue generated from selling treasury SOL. SkyAI recently offloaded around 1 million solana tokens, or nearly half its stockpile, while still retaining about 1 million SOL.

Additional tokens could be unloaded if favorable market conditions allow.

This structure establishes a direct bridge between digital asset management and investor payout, as SkyAI monetizes a portion of its crypto holding to buy back shares rather than maintaining SOL purely as a long-term balance-sheet asset.

Because SkyAI claims its combined cash reserves and digital holdings easily surpass the full buyback cost, no financing contingencies have been attached to the offer.

SOL Needs to Hold Above $100 to Maintain Its Momentum#

Several notable conditions have been attached to the buyback program.

A minimum participation threshold of 50% is required for each eligible security class, alongside a mandate that SOL’s market value stays above $100 for the duration of the tender period.

Further stipulations include avoiding severe market turmoil, receiving no court orders that halt the transaction, and ensuring no regulatory triggers would endanger SkyAI’s Nasdaq listing or Exchange Act registration.

Should investor participation exceed 95% within any security tier, share allocations would be executed on a pro-rata basis.

This setup ensures that solana’s market valuation extends beyond a routine treasury metric for SkyAI, as the success of the capital-return strategy is now directly linked to SOL’s ongoing price stability.

Board Rejects Forward Industries’ Proposal#

Simultaneously, SkyAI turned down Forward Industries’ uninvited, non-binding buyout offer proposing an all-stock swap, under which 0.306 FWDI shares would have been exchanged for each share of SkyAI.

SkyAI’s board determined in a unanimous vote that the buyout offer severely undervalued the enterprise while offering inadequate assurance regarding its execution timeline and overall value.

The striking contrast has drawn considerable notice.

SkyAI is turning down an outside acquisition bid while presenting investors with a lucrative cash exit, with funding partially supplied by offloading its cryptocurrency holdings.

For investors, the narrative extends far beyond a basic solana treasury playbook; the key test is whether SkyAI can convert those crypto reserves into tangible value for shareholders without destroying the underlying financial thesis that made SOL pivotal to the firm’s strategy.