Solana treasury firm SkyAI faces board challenge from would-be acquirer Forward Industries, shareholder group

Pressure is mounting on Solana treasury company SkyAI ahead of its Sept. 18 annual meeting, with a shareholder group and would-be acquirer Forward Industries separately opposing the reelection of the company's entire board.

Bastion Trading and affiliated shareholders who control a 9.99% stake in SkyAI said in a Sept. 3 SEC filing that they intend to vote "WITHHOLD ALL" on the company's five director nominees. The group cited concerns over recent bylaw changes that it says weakened shareholder rights, the adoption of a "poison pill" plan without a shareholder vote and related-party transactions.

Fellow Solana treasury company Forward Industries added to the pressure on Wednesday, publishing a letter urging SkyAI shareholders to similarly withhold their votes from all five directors and vote against the company's proposed 2026 equity incentive plan. The plan would authorize the company to issue 5.145 million additional shares for it to use for stock-based compensation, diluting shareholders by more than 7% in the process.

SkyAI, formerly known as Sharps Technology, has more recently pivoted toward what it calls "Agentic Finance for the Global South," combining stablecoin infrastructure with artificial intelligence. The company also controls the fifth-largest publicly traded Solana treasury, holding 2,009,494 SOL worth roughly $207 million.

Forward, meanwhile, is by far the largest Solana (SOL) treasury company, holding 7,013,536 SOL worth more than $722 million. It has been looking to consolidate smaller players in the sector and offered to acquire SkyAI in an all-stock deal worth $1.55 per share in June, a 20% premium at the time. SkyAI's board unanimously rejected the proposal in July, according to Forward.

Since the rejection, shares of Forward (FWDI) have grown by more than 50% while SkyAI shares (SKYA) have essentially stayed flat at $1.35.

Forward also raised concerns over SkyAI's related-party arrangements involving companies controlled by the brother of CIO and director Alice Zhang. The open letter highlighted warrants issued to one of those companies that SkyAI valued at more than $100 million.

Forward says it remains open to a potential "strategic transaction" with SkyAI.

Solana was trading around $103 on Wednesday, just a few ticks below the seven-month high of $110 reached two weeks ago.

SkyAI did not immediately respond to The Block's request for comment.