SkyAI, Inc. (Nasdaq: SKYA) has sold approximately half of its Solana holdings and announced a cash tender offer to repurchase a significant portion of its outstanding securities.
The company launched a tender offer at $3.00 per security covering up to 95% of its outstanding common shares and three classes of warrants, totaling approximately $201 million. The offer is set to commence around October 15, 2026, and will run for 10 business days, with the option for the company to extend or end it early.
Conditions and Funding
The tender offer requires at least 50% of each eligible class of securities to be tendered for the deal to proceed. If any single class does not meet this threshold, the offer for that class does not move forward. The company expects SOL's closing price to remain above $100 during the offer period for the deal to complete.
Funding comes from SkyAI's existing cash reserves and proceeds from recent Solana sales. The company sold approximately 1 million SOL, reducing its prior holdings of around 2 million SOL by half. Its cumulative SOL activity totals about 1.25 million SOL, valued at nearly $138 million.
Market Response and Strategic Shift
SkyAI shares rose 24.68% in pre-market trading to approximately $2.26 following the announcement. Even after this increase, the stock remained below the $3.00 tender offer price.
The buyback announcement coincides with the board's rejection of a non-binding acquisition proposal from Forward Industries, which had offered an exchange ratio of 0.306 FWDI shares for each SKYA share. SkyAI's board determined the proposal significantly undervalued the company.
The moves reflect a broader strategic pivot for SkyAI, which is shifting away from being primarily a crypto treasury firm toward becoming an AI-driven financial services provider. The SOL sale and share count reduction are key components of this transition.
Risks and Considerations
For shareholders, the tender offer provides a fixed cash exit at $3.00 per share, assuming conditions are met. However, risks exist in the offer's fine print. If SOL closes below $100 during the offer window, the expected price condition could derail the deal. Additionally, if fewer than 50% of any security class is tendered, that portion of the offer does not proceed.
