Forward Industries is initiating a stock repurchase program through a cryptocurrency-backed loan provided by Galaxy Digital LLC. This move underscores the growing utility of digital assets in traditional corporate finance, particularly with the company's focus on its Solana treasury strategy.
The publicly traded company announced on Thursday that it will repurchase 6,164,324 shares of its common stock from an undisclosed institutional investor for approximately $27.4 million, reducing the total number of outstanding shares to 76,977,809.
This financing structure allows Forward Industries to access liquidity without liquidating its crypto asset reserves, while continuing to generate yield through staking. This operation reflects a broader trend of corporations leveraging digital asset treasuries to optimize capital structures and potentially enhance shareholder returns.
Despite recent increased volatility in the cryptocurrency market, with Solana's price falling below $90, this stock buyback could help support Forward Industries' stock price, which has declined 87% from its September highs.
Crypto Treasury Strategies Under Pressure
Forward Industries began actively accumulating Solana during the crypto treasury strategy boom of last year's bull market. According to industry data, the company has since built the largest corporate treasury of SOL among publicly traded companies, with at least 18 other public companies adopting similar strategies.
Currently, many companies holding significant crypto assets are facing severe challenges with their treasury strategies. Declining cryptocurrency prices have led to valuations below the value of their digital asset holdings, while limited cash flow has made it more difficult to maintain operations.