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Bastion Trading Demands Answers as SkyAI Solana Treasury Shrinks 70%

BearishHigh impact
SKYA$2.52 −3.45%SOLUSD$104.29 −2.28%

Bastion Trading, a major shareholder holding nearly 10% of SkyAI, Inc. (NASDAQ:SKYA), is demanding an explanation after the company reduced its Solana treasury holdings by 70% in less than a month. SkyAI held over 2 million Solana tokens worth about $207 million in mid-September, but a recent filing revealed its holdings dropped to approximately 600,000 tokens. Bastion cited an unexplained 400,000 token discrepancy following an earlier sale announcement and called for detailed sales records and governance approval details.

The token sales represent a significant departure from SkyAI's strategy of maintaining a Solana corporate treasury. SkyAI plans to use sale proceeds to execute a $200 million buyback covering up to 95% of outstanding shares and warrants at $3 per share. Bastion announced it will not participate in the tender offer until its concerns are addressed. The investor is urging SkyAI to raise the buyback price to $3.50 per share, exclude specific advisor warrants linked to a relative of the chief investment officer, and overhaul the board of directors.

Market participants will watch whether SkyAI provides the requested disclosure and how management handles mounting shareholder pressure. All five board members previously received majority withhold votes during a September shareholder meeting. Shares of SkyAI, Inc. dropped 3.26% to $2.525, while Solana declined 2.62% to $103.90.

Key points

  • Bastion Trading demanded full details on SkyAI, Inc. selling 70% of its Solana treasury tokens in under a month.
  • SkyAI's Solana holdings fell from over 2 million tokens in September to roughly 600,000 in October filings.
  • SkyAI plans to fund a $200 million buyback for up to 95% of outstanding shares using proceeds from the token sales.
  • Bastion is refusing to join the $3-per-share buyback until concerns are met and wants the price raised to $3.50.
  • Bastion called for a board overhaul and the exclusion of warrants granted to a firm linked to the CIO's brother.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why is Bastion Trading questioning SkyAI?

Bastion Trading is demanding an explanation after SkyAI reduced its Solana treasury holdings by 70% within a month without explaining a 400,000 token discrepancy.

What are the details of the SkyAI share buyback plan?

SkyAI plans to use proceeds from Solana sales to buy back up to 95% of outstanding shares and warrants for approximately $200 million at $3 per share.

What changes is Bastion Trading requesting from SkyAI?

Bastion wants full sales disclosure, a board overhaul, the buyback price raised to $3.50 per share, and the exclusion of warrants granted to a firm tied to the CIO's brother.