SkyAI’s token fell 4.4% on Wednesday, October 14, 2026, as major shareholder Bastion Trading demanded answers over the company’s approximately 70% reduction in its Solana (SOL) treasury and calling for board changes.
The dispute comes as SkyAI plans to use money from the sales to fund a $200 million share buyback.
CoinGecko data at 8:05 p.m. UTC on October 14 showed SKYAI trading at approximately $0.03, down 4.4% from the relevant reference price. Its market value dropped to about $30.7 million, while its trading volume reached roughly $2.89 million over 24 hours.
Bastion refuses to join the buyback
Bastion Trading, which beneficially owns approximately 9.99% of SkyAI’s outstanding common stock together with its affiliates, said it did not intend to participate in the proposed tender offer unless the company addressed its concerns.
According to the official release on Wednesday, the investment firm wants to know why SkyAI sold most of its SOL holdings in less than a month without giving shareholders a full explanation of the sales.
SkyAI’s SOL treasury falls by about 70%
On September 14, SkyAI said it held more than 2 million SOL, worth around $207 million at the time. The company also said it remained committed to its Solana treasury strategy, which involves holding SOL as a major company asset.
However, SkyAI disclosed on October 11 that it had sold around 1 million SOL, leaving roughly 1 million tokens. A filing submitted on October 13 showed that its remaining holdings had fallen to approximately 600,000 SOL.
The figures point to a reduction of about 70% in less than a month. The latest balance also leaves a difference of around 400,000 SOL compared with the 1 million tokens previously reported as remaining.
Bastion wants SkyAI to explain when the sales took place, how much SOL it sold, the prices it received, and who approved the transactions. It also wants details of sale proceeds and a breakdown of the company’s remaining liquid and locked SOL holdings.
Bastion described the sales as a “fundamental departure” from SkyAI’s treasury strategy. The firm believes shareholders need a clear explanation because the SOL holdings are central to the company’s assets and business plans.
Bastion seeks a higher buyback price
The dispute comes as SkyAI prepares a proposed cash tender offer with a maximum aggregate purchase price of approximately $201 million. The company intends to purchase up to 95% of each specified class of outstanding common stock and eligible warrants at $3 per share or warrant, subject to the offer’s conditions.
It also wants certain strategic advisor warrants excluded from the offer. Bastion argues that the warrants were granted to a company controlled by James Zhang, the brother of SkyAI’s chief investment officer, Alice Zhang.
Shareholders push for board changes
The disagreement follows a September shareholder meeting in which all five SkyAI directors received more votes against supporting them than votes in favor. However, they kept their positions because shareholders had no direct option to vote for their removal.
Bastion is now calling for new independent directors and an independent committee to oversee the buyback. It also wants an independent review of the SOL sales and changes to several conditions attached to the offer.
The company now faces questions over how it handled its SOL holdings, why the sales were not fully explained, and whether its proposed buyback offers fair terms to shareholders.
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