Sky Quarry plans digital asset treasury strategy with $100 million goal

WOODS CROSS, Utah - Sky Quarry Inc. (NASDAQ:SKYQ) announced Tuesday plans to establish a digital asset treasury (DAT) with a capital target of up to $100 million. The waste asphalt shingle recycling company, currently valued at $10.57 million, said the strategy aims to strengthen its balance sheet while advancing future tokenization of its real-world assets. According to InvestingPro data, the company operates with a significant debt burden and has seen its stock decline over 60% year-to-date.

The company’s board has authorized management to pursue the digital treasury initiative through staged investments over time, while maintaining adequate working capital for its core operations.

"Currently, we are experiencing a natural evolution in the market, and the Company is excited about how a digital treasury can actually help support our current business," said Marcus Laun, President and Interim Chief Executive Officer of Sky Quarry, according to the press release.

Sky Quarry indicated that its approach to digital assets will focus on governance that protects shareholders, practical tokenization applications for real economic assets, and strategic partnerships with capital providers.

The company suggested potential benefits could include using digital tokens as collateral with suppliers to ease cash burdens and recording transactions on-chain to potentially reduce accounting costs.

Sky Quarry stated it is continuing discussions with potential partners and expects to provide updates as definitive agreements or tokenization initiatives reach material milestones. The company noted there is no assurance any particular transaction will be completed, with timing and terms subject to market conditions, regulatory review, and board approval. InvestingPro analysis reveals concerning metrics, including a weak current ratio of 0.27 and revenue decline of 50.59% over the last twelve months. Get access to 8 more crucial ProTips and detailed financial metrics with InvestingPro to make more informed investment decisions.

Sky Quarry describes itself as an integrated energy solutions company focused on recycling waste asphalt shingles and remediating oil-saturated sands and soils. The company currently trades at $0.45 per share, with an overall Financial Health score rated as WEAK by InvestingPro.

The information is based on a company press release statement.

In other recent news, Sky Quarry Inc. announced that its subsidiary, Foreland Refining Corporation, has launched a crowdfunding initiative to support operations at Nevada’s only active crude oil refinery. The Eagle Springs refinery, based in Railroad Valley, produces key products such as diesel, asphalt, vacuum gas oil, and naphtha, which serve mining, industrial, and transportation sectors across the Western United States. This move comes as Nevada imports approximately 86% of its refined fuel, highlighting the strategic importance of the refinery’s operations. Additionally, Sky Quarry is exploring a digital asset treasury initiative as part of its capital allocation strategy. This initiative aims to strengthen the company’s balance sheet and enhance shareholder value by investing in digital currencies, stablecoins, and other blockchain-based instruments. The company has formed an internal working group and engaged industry advisors to develop this strategy. These developments reflect Sky Quarry’s efforts to diversify its operations and explore innovative financial strategies.

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