SkyAI Sells 1 Million SOL for $107 Million, Average Purchase Price Around $194, Remaining Holdings Show Over $160 Million Loss
SkyAI has disclosed the recent sale of 1 million SOL, cashing out approximately $107 million, and indicated it may continue selling. The company previously held over 2 million SOL, valued at about $214 million.
On-chain data shows that since October, SkyAI has transferred out 1.57 million SOL, worth about $175 million. Its average purchase price is around $194, and the remaining holdings currently show a loss of over $160 million.
SkyAI, a Nasdaq-listed company, plans to use existing cash and proceeds from the SOL sale to launch a cash tender offer of up to $201 million, repurchasing up to 95% of its outstanding common stock and three classes of warrants at $3 per share, with the offer expected to start around October 15.
The company still holds about 1 million SOL and stated it will decide on further reductions based on market conditions. The total on-chain transfer amount does not equal the actual transaction volume, as some funds have flowed to exchanges or custodians.
This sale is intended to support the repurchase of shares and warrants, rather than merely reducing positions. The company previously rejected a non-solicited acquisition proposal from Forward Industries, believing the proposal undervalued the company. The offer is conditional, including that the SOL price must remain above $100 during the offer period.
As a seller reducing its SOL position, SkyAI is directing funds towards its stock buyback, aiming to shrink its public entity and reward existing shareholders; the SOL market faces additional selling pressure, with exchanges and institutions as buyers, while holding companies and staking participants are under pressure, driven by the company's balance sheet adjustments and buyback plans.
Source: Public Information
ABAB AI Insight
As a Nasdaq-listed SOL treasury company, SkyAI previously amplified its stock price Beta through large holdings of SOL, having held over 2 million SOL by the end of 2025. This sale of about half its holdings, intended for a $3 per share buyback of up to 95% of its shares and warrants, marks a shift from a strategy of accumulating coins to actively reducing positions.
In terms of capital flow, the company is converting its SOL reserves into cash for the stock buyback tender offer, motivated by the SOL price being significantly below the average of $194 and a loss exceeding $160 million, aiming to enhance per-share value and address potential undervaluation through share reduction. Funds are flowing from crypto assets to shareholders rather than being reinvested on-chain.
Similar cases include MicroStrategy adjusting its holdings or financing structure during Bitcoin price corrections, or some crypto treasury companies selling assets for stock buybacks during market downturns; the current SOL treasury group is transitioning from the "buy coins - stake - premium" phase to a reduction and contraction phase.
This essentially represents a restructuring of the industry chain: crypto assets are shifting from being core value assets for treasury companies to becoming buyback fuel, as the company shrinks its public entity by selling underlying tokens, transferring some pricing power back from the token market to the equity market, with the mechanism being an active reduction of leverage and Beta exposure under loss pressure.
ABAB News · Cognitive Law
When the coin accumulation premium disappears, reserves become buyback fuel
When losses exceed costs, reductions equate to balance sheet contraction
Token assets and equity vehicles can serve as interchangeable tools