Bastion Trading, a 9.99% SkyAI shareholder, demands board overhaul citing $5M in related-party consulting fees (92% of staking revenue) and threatens legal action.
Regulation & Gov ·
Bastion Trading, holding roughly 9.99% of SkyAI, is demanding board changes and signaling intent to pursue legal action over what it characterizes as shareholder value extraction. The investment firm raised alarm about $5 million paid in consulting fees during the first half of 2026 to Sol Edge, a firm controlled by the sibling of SkyAI's director and Chief Investment Officer Yuwen (Alice) Zhang—an outlay representing approximately 92% of the company's staking revenue that period.
Voting results from SkyAI's September 18, 2026 annual meeting underscore investor discontent: each of the five sitting directors faced substantially heavier vote withholding than approval, with some tallies nearing a three-to-one rejection ratio. An equity incentive plan also failed shareholder approval, drawing opposition from approximately 82% of cast votes.
Bastion Trading's challenge hinges on whether related-party arrangements siphon value from the broader shareholder base to insiders and management. The firm has signaled willingness to escalate to legal remedies if board engagement does not materialize promptly. What specific governance reforms Bastion seeks, whether other institutional holders share its concerns, and how the board intends to respond remain unclear.