Forward Industries Uses Solana Treasury to Fund Share Buyback via Crypto-Backed Loan

Forward Industries has launched a share repurchase program financed through a crypto-backed loan, highlighting how digital asset reserves are being integrated into corporate finance strategies. The company agreed to buy back 6,164,324 shares for approximately $27.4 million, reducing its total outstanding shares to 76.9 million.

Crypto-Backed Financing and SOL Treasury Strategy

To fund the buyback, Forward secured a $40 million loan from Galaxy Digital at a 3.4% interest rate. The loan is backed by the firm’s holdings of Solana, totaling more than 7 million tokens valued at roughly $613 million.

This structure allows the company to unlock liquidity without selling its crypto assets, while continuing to earn yield through staking. The move aligns with a broader trend of companies leveraging digital asset treasuries to optimize capital allocation and potentially improve shareholder value.

Market Pressure and Treasury Risks

The buyback follows a prolonged decline in both Solana’s price and Forward’s stock, which has dropped sharply from its peak. The company previously authorized up to $1 billion in share repurchases to navigate ongoing volatility.

However, crypto treasury strategies remain under pressure. Industry data shows significant unrealized losses across firms holding digital assets, raising concerns about sustainability as market conditions remain uncertain.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.