Timeline of the position's collapse: On September 14, the company publicly confirmed that SOL remains its main treasury asset. On October 11, it emerged that about 1 million SOL had already been sold. In the SEC report dated October 13, 600,000 SOL remained; by October 14, only 210,000 locked coins and $204.6 million in cash were left. The last SOL were sold on October 15. The sales went through BitGo, Anchorage and Coinbase.
The money is needed to buy back its own securities. Starting October 16, SkyAI is buying back from shareholders up to 48.3 million shares and 18.8 million warrants (the right to buy a share at a fixed price) at $3 apiece - that is up to 95% of all shares and roughly $201.3 million. The price is 65% above the October 9 close. The tender deadline is October 29; after the full buyback, the company will have about $22.5 million left.
Major shareholder Bastion Trading (nearly 10% of the company) is contesting the deal: it demands a detailed report on the dates, volumes and prices of the sales, proposes raising the buyback price to $3.50 and changing the board of directors. There have been no official accusations of legal violations so far.
Two consequences matter for the market. A source of income has disappeared: in Q2 2026, the company earned $2.3 million in net revenue from staking (income for locking coins in the network). And the condition that SOL must stay above $100 was removed from the documents - there is nothing left to hold. The company has not announced plans to rebuild its Solana reserves.
Do you trade SOL when it's being dumped by the millions?
When a holder of 2 million coins unloads into the order book, the altcoin moves on news, not on levels - and those are exactly the candles you catch. The only thing is that prop firms have different instrument lists: SOL is far from available everywhere, and where it is, the leverage and overnight position rollover rules differ. You can see this from the terms of a specific program, not from its description in an ad. It's worth looking into before the next such sell-off.