Forward Industries Funds Share Buyback with $40 Million Solana-Locked Loan

Forward Industries has launched a share repurchase program using a $40 million loan collateralized by its Solana treasury. The company will buy back 6,164,324 shares of its common stock from an unnamed institutional investor for approximately $27.4 million.

The loan allows Forward to access liquidity without liquidating its Solana holdings, which currently have a value of around $613 million at current prices. This move falls under the company's $1 billion share repurchase authorization established in November.

Forward's treasury consists of 7,013,536 Solana, acquired aggressively last year as crypto treasury strategies gained traction during the bull market. At least 18 other public companies have since adopted similar strategies, collectively carrying over $1.5 billion in unrealized losses tied to the broader crypto market downturn.

The sector's volatility is likely to drive broad consolidation among CryptoTreasury companies, according to Wojciech Kaszycki of crypto infrastructure company BTCS. Many are under pressure as declining prices push their valuations below the value of the digital assets they hold.