Bastion challenges SkyAI’s $201M buyback as SOL treasury falls 70%

Bastion Trading, which, with affiliates, owns about 9.99% of SkyAI (Nasdaq: SKYA), challenged the company’s proposed $201 million buyback on October 14. SkyAI’s Solana holdings had fallen roughly 70% in under a month, and Bastion wants to know exactly when and how the tokens were sold. The clash could resonate beyond SkyAI. If crypto treasury companies face falling share prices, will they start selling the assets they spent months accumulating?

The 400,000 SOL that moved between two filings

On September 14, SkyAI announced that it had over two million SOL in its possession. However, on October 11, the company confirmed that half had been disposed of, leaving one million for SkyAI as mentioned in its statement. Only two days later, an SEC filing revealed that its SOL holding had further decreased to 600,000. That leaves 400,000 SOL unreported in previous filings without indicating what was the reason for additional sales of SOL. SkyAI hinted that there will be more sales in the future:

“The Company continues to monitor the market for SOL and may continue to sell depending on market conditions.”

Bastion wants answers now. It is looking to know the details, including when the tokens were sold, at what price, how much money was earned from the sales, and who approved the sale. It also called for an independent review of the conducted transactions.

A board most shareholders voted to withhold

Bastion’s worries extend beyond finances. The company questions the leadership capabilities of SkyAI due to the fact that at the annual meeting held on September 18, all five directors received more withheld votes than supported votes. According to the the SEC report, Soren Bo Christiansen had 6,894,675 votes for and 20,670,032 withheld. Jason Monroe had an almost identical situation with 6,901,524 votes for and 20,663,183 withheld. Nevertheless, both of them remain in their positions thanks to the plurality voting rules employed at the company. Other resolutions of the shareholders include rejecting the 2026 equity incentive plan with 22.46 million votes cast against and just 5.05 million in favor. Bastion wants independent directors elected by the shareholders to become part of the board and initiates the creation of a separate committee charged with monitoring the share buyback process.

The $3.00 price Bastion wants raised to $3.50

SkyAI made an offer to acquire 95% of each eligible class of shares and warrants for a price of $3.00, which had a value of around $201 million. It described the price as being at a premium of 65% from the previous closing price on October 9. However, it still does not reach the level of $6.50 for share and warrant units in August 2025, as per , as per Cryptopolitan. The offer period was set for 10 business days, commencing on or around October 15. It is subject to a condition of at least 50% of each class being accepted and SOL remaining above $100 unless waived. Bastion would not accept unless the price was increased to at least $3.50 and governance changes took place. Separately, SkyAI didn’t agree to Forward Industries’ all-share proposal because it was too low.

Liquidation versus accumulation, and the selling-pressure question

The move by SkyAI has been recognized as consistent with what Galaxy research said: If treasury stocks begin to lose their premium, then companies have the option of raising cash from token sales to finance buybacks. For instance, ETHZilla liquidated $40million in Ether in 2025, while Sequans raised cash through the sale of Bitcoin to pay off debts. On the contrary, Forward Industries had in its possession 8,501,298 SOL and their equivalents as of September 30, which is an increase of 948,601 in a quarter. The current number of SOL owned by SkyAI is around 600,000.

For Solana investors, the difference is worth watching. While Forward Industries goes on buying more assets, SkyAI is cashing in its investments. It is not yet known if other firms will follow the example of SkyAI. At this point, we can confirm SkyAI’s activity but cannot find proof of a wider selloff.