SOL reserve shrinkage prompts shareholder challenge: SkyAI (SKYA.US) acquisition takes an unexpected turn
SkyAI's planned $200 million buyback was halted by Bastion Trading due to a sharp drop in SOL reserves from 2 million to 600,000. Bastion Trading raised concerns over accounting discrepancies and conflicts of interest, demanding the buyback price be increased to $3.5 and that related warrants be excluded.
According to Woofun AI, SkyAI (SKYA.US) encountered obstacles in advancing its $201 million tender offer plan. Investment firm Bastion Trading suspended its participation after discovering that the holdings disclosed in the 8-K form were 400,000 fewer tokens than previously announced, demanding a formal explanation from management regarding the asset discrepancy.
The deeper issue lies in the dramatic fluctuations disclosed in the balance sheet. U.S. Securities and Exchange Commission documents show that SkyAI (SKYA.US)’s SOL reserves plummeted from over 2 million tokens on September 14 to approximately 600,000 tokens in the latest disclosure.
It is noteworthy that in mid-September, management claimed to hold approximately $207 million worth of Solana assets through an active custody mechanism. However, on October 11, 2026, SkyAI (SKYA.US) announced the liquidation of nearly 1 million tokens, despite the balance sheet still showing a substantial amount of similar tokens. The 8-K form submitted on October 13 further confirmed that the actual remaining quantity was only about 600,000 SOL.
Data compiled by Woofun AI indicates that these trading activities in recent weeks have seriously deviated from the original digital asset reserve strategy, causing investors to doubt the execution of these transactions.
The conflict has since escalated, with the focus shifting to repurchase details and pricing disagreements. SkyAI (SKYA.US) originally intended to use funds to repurchase 95% of its outstanding shares and warrants at a cost of approximately $200 million, with an initial price set at $3.00 per share.
However, Bastion Trading believes this valuation harms minority shareholders' interests and advocates for a minimum compensation price of $3.50 per share to accurately reflect the value of funds raised from asset disposals. The more critical variable lies in conflict-of-interest allegations, as the firm demands that warrants granted to entities related to the brother of SkyAI (SKYA.US)’s Chief Investment Officer be excluded from the buyback, and requests disclosure of the specific sale dates, quantities, transaction prices, and internal decision-making bodies.
Since the end of the third quarter of 2026, tensions between shareholders and the board of directors have intensified. At the annual shareholders' meeting held in September, each of the company’s five directors received more votes against than for, but due to the lack of a recall mechanism in the company charter, they remained in their positions. As the official tender offer acceptance period approaches, the board must formally respond to the main institutional shareholders’ audit and pricing demands, or the acquisition process risks coming to a standstill.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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