Bastion Trading, a significant stakeholder holding approximately 9.99% of SkyAI (NASDAQ: SKYA), has formally challenged the company’s Board of Directors regarding recent fiscal maneuvers. The shareholder is demanding a comprehensive explanation from Executive Chairman Paul K. Danner III and the board concerning the total liquidation of the firm's Solana (SOL) reserves. This move comes alongside a critique of a proposed cash tender offer, which Bastion Trading argues undervalues the company's current position and lacks transparency regarding the underlying blockchain assets and balance sheet health.
Controversy Over SOL Reserves and Tender Pricing
The core of the dispute centers on the decision-making process that led to the disposal of all SOL tokens held by SkyAI. Bastion Trading is seeking immediate disclosure of the transaction details, including the dates and prices at which the Solana holdings were sold, to determine if the liquidation served the best interests of the shareholders. Furthermore, the investment group has proposed specific adjustments to the current buyback framework:
- Raise the tender offer price from the current level to at least $0.5 per share.
- Increase the maximum purchase percentage for pre-financed warrants from 95% to 100%.
- Exclude strategic advisor warrants from the current offer to prevent potential dilution or unfair advantages.
Demands for Financial Transparency and Governance
Beyond the cryptocurrency liquidation, Bastion Trading has voiced concerns regarding potential conflicts of interest among the leadership at SkyAI. The shareholder demands a full disclosure of all securities and potential gains held by directors, executives, and related parties. This request aims to clarify whether the board's decision to pivot away from digital assets was influenced by internal incentives rather than corporate growth. The demand also includes a call for the release of the company’s full balance sheet and the specific methodology used to determine the pricing for the tender offer.
The situation reflects growing tensions between traditional corporate governance and companies holding digital assets on their balance sheets. As of October 21, 2026, SkyAI has yet to provide a public rebuttal to these demands. The outcome of this friction may set a precedent for how NASDAQ-listed firms manage their crypto-treasuries and communicate such high-stakes financial pivots to their institutional investors.
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