Solana Treasury Company SkyAI Dumps 1M SOL Despite Market Recovery

Solana treasury company SkyAI has sold approximately 1 million SOL, cutting its crypto holdings nearly in half as management prepares a major corporate buyback. This development comes as the broader crypto market begins to recover.

For context, SkyAI is a public firm that rebranded from Sharps Technology (STSS) to its current name in May 2026. Previously operating as a medical device firm, SkyAI transitioned to the intersection of AI and blockchain technology. Within months, the firm grew its SOL holdings to over 2 million units. It also began operating a Solana validator node.

SkyAI Sells 1M in SOL

SkyAI decided to dispose of half of its SOL holdings to finance a tender offer. This is a public proposal from the company to buy a specific number of shares from existing shareholders at a set price. The Solana treasury firm noted that it would combine its cash reserves with the proceeds from these SOL sales to fund an offer worth up to $201 million.

Under the proposed terms, eligible shareholders and warrant holders will have the opportunity to receive $3 in cash for each share or warrant they tender. The offer is expected to start around October 15, pending regulatory filings and final conditions.

This buyback proposal could cover up to 95% of each eligible class of outstanding common stock and certain pre-funded warrants. However, SkyAI has stipulated that at least 50% of each class must be tendered, and the price of SOL must remain above $100 during the offer period.

Additionally, the company has suspended ordinary share repurchases and will not resume purchases outside the tender offer until at least ten business days afterward.

After the sale, SkyAI retains 1 million SOL. Still, management has hinted at the possibility of more future sales. At the time of writing, Arkham data showed that the firm continues to dispose of SOL.

SOL’s Modest Recovery Raises Questions About SkyAI’s Selling Timing

SkyAI’s sale news coincides with SOL’s gradual price recovery. Over the past week, SOL has dropped from a weekly high of $121 to $106.

Historically, selling a large number of crypto assets leads to a significant downtrend in the asset’s price. This may have been the case with SkyAI’s sale.

Despite SkyAI’s disposal, SOL is currently priced at $110, indicating some recovery but not a return to its previous levels. This price recovery has not stopped SkyAI’s sales.

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