Major shareholder presses SkyAI on Solana sales after treasury shrinks 70% in a month

Bastion Trading, which holds nearly 10% of Solana treasury company SkyAI, is demanding an explanation for a major drop in its SOL holdings ahead of a proposed $3-per-share buyback.

In a Wednesday release, the investment firm said that it would not participate in the tender offer until its concerns were addressed. It also reiterated calls for a complete overhaul of SkyAI's board.

SkyAI said on Sept. 14 that it held more than 2 million SOL worth roughly $207 million at the time, and was still committed to its Solana treasury strategy.

Then, in an Oct. 11 buyback announcement, SkyAI disclosed it sold around 1 million SOL and still held roughly 1 million. But an 8-K filed Tuesday put the remaining balance at approximately 600,000 SOL, totaling a 70% reduction of its treasury in less than a month.

The filing did not explain the 400,000 SOL discrepancy from its previously announced sale. Bastion wants SkyAI to disclose dates, quantities, prices, and proceeds of all recent sales, as well as how the transactions were approved.

Bastion called the sale a "fundamental departure" from SkyAI's treasury strategy.

According to the filings, SkyAI said it plans to use proceeds from the SOL sales to buy up to 95% of its outstanding shares and warrants for around $200 million. Bastion is pushing for the per-share buyback raised from $3 to $3.50. It also wants strategic advisor warrants to be excluded on the basis that they were granted to a company controlled by the brother of SkyAI's CIO.

This all follows a September shareholder protest that saw all five SkyAI directors receive more withhold votes than support, but were able to keep their seats because there was no option to vote to remove them.