SKYAI surges 21% on Forward Industries bid, 126% rally in sight

SKYAI jumped 21% after Forward Industries' unsolicited takeover bid for its parent company expired without a response on June 12.

"We believe the current market environment necessitates cooperation and strategic action to deliver on promises made to our shareholders," Forward Industries said Monday of its acquisition strategy targeting three Solana treasury rivals.

Forward, the largest publicly traded Solana treasury company, acquired nearly 7 million SOL last year for about $1.6 billion. The firm made all-stock acquisition offers to the Solana Company, Brera Holdings and SkyAI — formerly known as Sharps Technology. Two boards rejected the proposals without engaging, while SkyAI did not respond before the June 12 expiration.

The expired bid leaves SkyAI's path uncertain, though the token's 21% surge signals investor expectations of a revived offer. Forward held more than 7 million SOL as of March 31, representing over $1 billion in unrealized losses at Solana's current price near $75. SOL gained nearly 11% in the past 24 hours as part of a broader crypto rally following the announced U.S. peace deal with Iran.

Shares in Forward Industries jumped more than 14% to $4.89 on Monday as Solana surged alongside the broader market. The company's Solana holdings, acquired at an average price far above current levels, have generated more than $1 billion in paper losses based on SOL's current trading price near $75.

The takeover campaign reflects a consolidation push among Solana treasury firms, which hold SOL on their balance sheets as a corporate asset. Forward argued that combining the companies would improve shareholder standing while strengthening the Solana ecosystem. The firm's all-stock proposals would have given shareholders of each target company shares of Forward Industries in exchange.

Brera Holdings shares rose more than 7% to $4.71 on Monday, while the Solana Company gained nearly 12%. SkyAI's stock surged 14%, though the SKYAI token outpaced the equity with a 21% gain, reflecting the token's higher volatility and speculative premium tied to the deal.

SkyAI's token has more than doubled from its lows this year, and some traders see a potential 126% rally if Forward renews its bid or a competing offer emerges. The company's board has not publicly commented on the expired proposal. A representative for Forward Industries did not immediately respond to requests for comment.

The broader crypto market rallied Monday after the U.S. announced a peace deal with Iran, pushing Bitcoin and major altcoins higher. Solana's 11% gain to around $75 provided additional tailwinds for the Solana treasury firms, whose balance sheets are directly tied to SOL's price. Forward Industries' unrealized losses on its Solana holdings underscore the risks of corporate treasury strategies concentrated in a single volatile asset.

This article is for informational purposes only and does not constitute investment advice.