Bastion Opposes Sky AI Buyback After Solana Treasury Sales

Major Shareholder Opposes Sky AI Tender Offer Following Treasury Sales

Tensions are rising between crypto treasury firm Sky AI and one of its largest investors. On October 15, 2026, investment firm Bastion Trading announced its firm opposition to Sky AI’s proposed $201 million share buyback offer.

Bastion Trading, which together with its affiliates holds approximately 9.99% of Sky AI’s common stock, stated that it will refuse to participate in the $3.00-per-share tender offer unless major changes are made. At the center of the dispute are governance concerns, missing financial disclosures, and the surprising sell-off of nearly 70% of Sky AI’s SolanaSOL+1.25% treasury.

This corporate showdown comes during a broader crypto market backdrop where major digital assets showed mild upward movement, with Bitcoin (BTCBTC+0.60%) trading around $82,274 (+0.76%) and EthereumETH+0.75% at $2,447 (+0.68%).

Understanding the Buyback Offer: What Is Sky AI Planning?

To understand the friction, it helps to first look at what Sky AI set out to do. The company recently announced an ambitious capital restructuring plan. Under this proposal, Sky AI intends to spend up to $201 million to buy back up to 95% of its outstanding common shares and eligible warrants at a price of $3.00 per share.

In simple terms, a tender offer is when a public company offers to purchase its own stock back from existing investors at a fixed price. Companies often do this to return capital to shareholders or consolidate ownership. However, Bastion Trading argues that the current terms severely undervalue the business and come at the expense of proper governance.

The Solana Mystery: How 70% of the Treasury Disappeared

The primary catalyst behind Bastion’s pushback is the rapid liquidation of Sky AI’s Solana holdings. Prior to the sales, Sky AI was widely known as a dedicated crypto treasury company, holding more than 2 million SOL tokens as a key asset.

Here is how the timeline of events raised eyebrows among investors:

• Public Reaffirmation: Sky AI publicly reaffirmed its core corporate strategy of holding a massive Solana digital asset treasury.
• Initial Reports: Sky AI initially stated that it had sold roughly 1 million SOL tokens—which represented about half of its total holdings at the time.
• Regulatory Disclosures: A subsequent regulatory filing revealed that only about 600,000 SOL remained in company accounts.
• The Math: This meant that Sky AI had actually disposed of approximately 70% of its entire Solana reserve in less than 30 days.

Bastion Trading points out that this sudden change in asset management occurred without adequate communication to shareholders, sparking significant concern over corporate transparency.

Bastion Demands Full Disclosure and an Independent Review

Because Sky AI shifted away from its declared treasury policy so quickly, Bastion Trading insists that full clarity is required before any shareholder agrees to tender their stock. Bastion stated that shareholders are currently missing vital operational details about the multi-million-dollar sell-off.

Shareholders deserve complete visibility into when and how company assets were liquidated before deciding whether to accept a tender offer.

Specifically, Bastion wants Sky AI to publicly disclose the following key information:

• Execution Dates: The exact dates and times when the 1.4 million SOL tokens were sold.
• Execution Prices: The average sales prices achieved across each transaction.
• Financial Proceeds: Total net proceeds generated from the token sales.
• Transaction Costs: All fees, commissions, and execution slippage paid during the sales process.
• Governance Approvals: The exact internal board procedures and authorizations behind the decision to liquidate.

To ensure fairness, Bastion is formally calling for an independent review of all Solana transactions executed by management before the tender process is permitted to start.

Board Governance Under Fire: A Vote of No Confidence

The dispute over crypto assets has also exposed deeper governance issues at Sky AI. According to Bastion, the current board lacks a clear mandate from shareholders to execute such a significant restructuring.

At Sky AI’s 2026 annual meeting, all five incumbent directors received more withhold votes than votes cast in their favor. In corporate governance terms, this represents a strong signal of dissatisfaction from the stock's voter base.

To address this lack of trust, Bastion is demanding two crucial structural fixes:

1. Refresh the current board by bringing in new, qualified independent directors.
2. Establish an independent special committee empowered to oversee the tender offer process without management influence.

Financial Terms: Why $3.00 Per Share Isn't Cutting It

Beyond governance and transparency, Bastion believes the $3.00 buyback price simply isn't good enough. Based on Bastion’s own calculations, Sky AI's estimated Net Asset Value (NAV) sits around $3.30 per share.

Because $3.00 represents a discount below the estimated underlying value of the company's remaining assets and cash, Bastion insists that Sky AI raise the buyback price to at least $3.50 per share.

Additionally, Bastion is demanding several specific modifications to the terms of the buyback offer:

• Remove the $100 SOL Price Condition: Eliminate any clause that ties the buyback offer to Solana holding a minimum price of $100.
• Eliminate Thresholds: Remove the requirement that at least 50% of shares must participate for the tender to close.
• Exclude Advisor Warrants: Prevent strategic-advisor warrants from taking part in the repurchase allocation.
• Prevent Insider Participation: Bar company insiders from tendering their own stock or options under this offer.

Broader Corporate Context: Rejection of Takeover Bids

This intense shareholder battle arrives shortly after another major corporate development for Sky AI. Prior to proposing the $201 million tender offer, Sky AI rejected an unsolicited, all-stock takeover proposal from Forward Industries.

Having fended off an external takeover attempt, Sky AI's attempt to self-fund a share buyback using its Solana treasury has now created an internal battle with its primary shareholders.

Investors should remember that managing treasury funds in volatile digital assets brings unique risks. Past performance of digital assets like Solana is not a guarantee of future results, and crypto asset markets remain subject to price swings.

What Lies Ahead for Sky AI Shareholders?

The focus now shifts from whether Sky AI has the funds to complete its $201 million buyback to whether shareholders will actually accept the terms. With a nearly 10% shareholder leading the opposition, Sky AI faces mounting pressure to address its board structure and clarify its remaining crypto reserve strategy.

Whether Sky AI will raise its offer to $3.50, provide full visibility into its SOL token sales, or agree to independent governance oversight will decide the ultimate fate of this crypto treasury firm.