Bastion Trading Demands SkyAI Explain 70% Drop in Solana Token Holdings

Key Points

Table of Contents

SkyAI’s Solana holdings declined approximately 70%, falling from more than 2 million SOL to around 600,000 tokens.
Bastion Trading identified a 400,000 SOL discrepancy in SkyAI’s recent public filings.
Bastion requires comprehensive transaction documentation and independent oversight before agreeing to the planned buyback.
The investor group seeks a minimum repurchase price of $3.50, up from the proposed $3 per share.
SkyAI intends to proceed with an approximately $201 million buyback amid ongoing conflicts regarding board seats and deal structure.

Bastion Trading has confronted SkyAI regarding the disposal of the majority of its Solana token portfolio, insisting on comprehensive transparency before the firm executes a planned $201 million share repurchase program.

The investment firm and its affiliates control approximately 9.99% of SkyAI’s equity. This Wednesday, Bastion announced it would refuse to tender shares at the $3 price point until management resolved outstanding concerns. The firm encouraged fellow shareholders to postpone their decisions.

Dramatic Reduction in SOL Token Inventory

SkyAI disclosed holdings exceeding 2 million SOL on September 14, representing approximately $207 million at that time. By October 11, the company stated it had liquidated about 1 million tokens while maintaining roughly 1 million. A separate Solana price analysis showed SOL trading around $121 in early October.

Yet an October 13 filing with the Securities and Exchange Commission revealed SkyAI’s actual remaining position at approximately 600,000 SOL. These numbers reflect a reduction of at least 70% from September levels. Approximately 400,000 tokens cannot be accounted for between the two public statements.

Bastion Seeks Complete Sale Documentation

Bastion requested that SkyAI disclose every recent transaction, specifying dates, quantities, execution prices, associated fees and net proceeds. The firm demanded documentation showing how the board evaluated and authorized each disposal. Bastion questioned why SkyAI delayed informing shareholders about these material transactions.

Bastion characterized the disposals as a significant shift from SkyAI’s stated Solana treasury approach and called for an independent audit. Market participants seeking SOL exposure can access Solana investment funds; recent data showed Bitwise’s staking fund holding approximately $1.3 billion in assets.

Election Results Intensify Investor Tensions

SkyAI’s September annual meeting introduced additional complications. All five director nominees received more votes against their election than in support, though the firm’s bylaws permitted them to continue serving.

Bastion reiterated its call for independent board members and a special committee to evaluate the buyback proposal. The firm objected to adviser warrants, pointing to their issuance to an entity controlled by the sibling of SkyAI’s chief investment officer. SkyAI previously declined Forward Industries’ acquisition offer.

Repurchase Structure Draws Additional Criticism

SkyAI proposes paying $3 per share or one qualifying warrant while repurchasing up to 95% of each security class. Another digital asset treasury business, Metaplanet, recently unveiled a distinct share buyback program, though its provisions vary.

Bastion demands a minimum price of $3.50 alongside limits on insider tendering. SkyAI anticipates commencing the tender offer approximately October 15, contingent upon conditions including SOL maintaining prices above $100. The company’s filing indicated it had secured roughly 80% of the necessary funding.