SkyAI, a Nasdaq-listed company, significantly reduces SOL reserves; major shareholder Bastion Trading demands immediate full disclosure of SOL disposal details
SkyAI, a Nasdaq-listed company, has its core digital asset reserve in Solana, previously holding over 2 million SOL.
Since October, the company has transferred out approximately 1.57 million SOL, valued at about $175 million. SkyAI has disclosed the recent sale of 1 million SOL, approximately $107 million, and indicated that it may continue to sell.
On-chain data shows an average purchase price of about $194, estimating a floating loss of over $160 million based on recent prices.
A Form 8-K filed on October 13 shows that the company's SOL holdings have decreased to about 600,000 SOL, a reduction of about 70% from the "over 2 million SOL" stated in mid-September. The timing of the sales, average transaction price, and approval process have not been adequately disclosed to shareholders.
Bastion Trading, a major shareholder holding about 9.99% of the circulating common stock, expressed serious concerns today regarding SkyAI's cash tender offer announced on October 11, stating it will not participate until its concerns are properly addressed.
Bastion Trading demands immediate full disclosure of SOL disposal details, initiation of an independent review, reorganization of the board, and an increase in the offer price from $3.00 per share to at least $3.50.
Bastion Trading also pointed out that at the 2026 annual shareholders' meeting, all five current directors received far more abstentions than votes in favor, with some approaching a three-to-one ratio, questioning the current board's decision to lead the sale of core reserves and push for the tender offer after losing shareholder trust.
Who is buying: The company is raising funds through the sale of SOL for share and warrant buybacks. Who is selling: SkyAI is reducing its SOL reserves. Event drivers: tender offer and shareholder dissent. Funds are flowing towards share buybacks rather than continuing to hold SOL. Beneficiaries are shareholders accepting a higher offer price; pressured parties are the company holding SOL at a higher cost and the current board.
Source: Public information
ABAB AI Insight
SkyAI previously positioned its core strategy around holding over 2 million SOL as digital asset reserves and reaffirmed this stance in mid-September. Historically, the company has supported its balance sheet through SOL holdings while advancing share buybacks and responding to external acquisition proposals.
In terms of capital strategy, the company is converting its SOL reserves into cash for a cash tender offer of up to approximately $201 million, planning to repurchase up to 95% of its common stock and warrants. Resources are shifting from on-chain asset allocation to equity buybacks, with an average purchase cost of about $194 leading to floating losses. The motivation is to repurchase shares at a discount while addressing shareholder pressure and external acquisition attempts.
Similar cases include other companies with cryptocurrency asset reserves selling reserves for buybacks or operations after price declines. The current industry is in a contraction phase, with reserve companies turning to capital returns when asset prices are under pressure rather than continuing to accumulate.
Essentially, this reflects capital concentration and restructuring of the industry chain. After the decline in SOL prices, the company chose to sell reserves to repurchase shares, shifting assets from on-chain holdings to cash distributions to shareholders. The mechanism is that after the expansion of floating losses and shareholder voting showing a loss of trust, the board prioritizes equity structure over maintaining the original reserve strategy, changing the company's path from "holding assets" to "returning capital."
ABAB News · Law of Cognition
Reserve costs exceed market prices, selling for buybacks
Disclosure lags behind transactions, shareholders see reductions before documents
Abstentions outnumber votes in favor, yet the board still leads asset disposals