SkyAI Sells 1M SOL to Fund $201M Share Buyback
SkyAI (Nasdaq: SKYA) plans a $3-per-security cash tender offer for up to 95% of its outstanding shares and three classes of warrants, with a maximum cost of about $201 million. The offer is expected to begin around October 15, run for 10 business days and require at least 50% participation from each eligible class. It is also conditional on SOL closing above $100 during the offer period.
SkyAI has sold about 1 million SOL, reducing its holdings from roughly 2 million by half, to help fund the buyback. The company says its cumulative SOL activity totals about 1.25 million SOL, valued at nearly $138 million. The planned sales may add selling pressure to SOL, though the timing and amount of any further sales are unclear. SKYA shares rose 24.68% in pre-market trading to about $2.26, below the $3 tender price.
SkyAI also rejected a non-binding, all-stock acquisition proposal from Forward Industries, saying it undervalued the company. The tender offer and asset sales accompany SkyAI’s shift from a Solana treasury strategy toward AI-focused financial services.
Bearish
SkyAI’s sale of about 1 million SOL—roughly half its reported holdings—creates a direct source of potential selling pressure on SOL. The earlier account also said the buyback could be funded by selling some of the company’s Solana holdings, while the later update confirms a substantial sale has taken place. This points to a bearish near-term supply signal, although the summaries do not establish that the sale caused a change in SOL’s market price, and its execution method and timing are not specified.
The tender offer’s condition that SOL close above $100 could make that price level more salient to traders, but it does not itself guarantee demand for SOL. Over the longer term, the impact depends on whether SkyAI makes further sales and whether other treasury firms follow suit. If selling is limited and already reflected in the market, the pressure may fade; if additional sizeable sales occur, they could weigh on liquidity and sentiment. The classification is bearish because of the confirmed large-scale SOL disposal, not because of the SKYA share-price reaction.