Solana treasury firm SkyAI sells 1 million SOL ahead of $201 million share buyback

2 min read
Solana treasury firm SkyAI sells 1 million SOL ahead of $201 million share buyback
PrimeXBT Editorial Team
Reviewed by PrimeXBT

Topics in article

Nasdaq-listed Solana treasury company SkyAI has sold approximately 1 million SOL, half of its crypto reserves, ahead of a planned cash tender offer worth up to $201 million. The company also rejected an unsolicited acquisition proposal from Forward Industries.

SkyAI confirmed it sold roughly 1 million SOL and still held approximately 1 million tokens when it issued its October 11 announcement. The company said it was monitoring Solana's market price and could sell more tokens depending on market conditions.

Blockchain analyst Ember reported on October 12 that another 211,623 SOL moved from a SkyAI-linked wallet to Coinbase Prime. Ember estimated that approximately 1.25 million SOL, worth $138 million, had been sold or moved toward trading venues over five days. However, the latest transfer does not independently establish that the tokens were sold.

SkyAI-linked wallets move SOL to exchanges

The activity follows several large transfers. In an October 10 post, Ember reported 468,000 SOL, valued at approximately $51.1 million, moving from SkyAI-linked wallets within 24 hours. Of that, 218,000 SOL went to multiple centralized exchanges and 250,000 SOL to BitGo.

On the same day, Lookonchain identified 568,000 SOL worth approximately $63.87 million moving to exchanges over three days. The platform estimated SkyAI's average purchase price at around $194 per token, so a sale could produce losses of approximately $46 million. That estimate is conditional on a sale and is not a company-confirmed realized loss.

Tender offer targets 95% of shares and warrants

The company plans to use existing cash and Solana sale proceeds to buy up to 95% of its common stock and three classes of warrants at $3 each. The offer is expected to begin around October 15 and stay open for 10 business days, and the maximum purchase price would reach approximately $201 million.

SkyAI said the price represents a 65% premium to its October 9 closing share price. Completion depends on conditions including at least 50% of each eligible securities class being tendered and Solana's closing price staying above $100 throughout the offer period, though SkyAI reserved the right to waive certain conditions.

Board rejects Forward Industries

The buyback follows SkyAI's decision to reject another unsolicited proposal from fellow Solana treasury company Forward Industries, which offered 0.306 shares of its common stock for each SkyAI share. SkyAI's board concluded the proposal undervalued the company and was not in shareholders' best interests.

Source: crypto.news

Trading involves risk.

Most traded markets

XAU / USD
-0.73% 4,163.96
BRENT
+2.1% 109.413
BTC / USD
-0.6% 82,580.9
EUR / USD
-0.25% 1.11730
USTEC
-0.66% 30,694.71
NFLX
+0.78% 70.85
View all markets

Author

PrimeXBT
Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...
Read author’s articles
Alert Triangle Risk Disclaimer
Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.

Today in markets

Browse Crypto News

Register Now

Trading involves risk

Get started in minutes

Our clients love how fast and simple our sign-up is. It takes just a few minutes to get started!

Get Started Get Started
Get started in minutes

Need Help?

Risk Warning:
Trading in leveraged products carries a high level of risk and may not be suitable for all investors.