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- Forward Industries boosts Solana exposure through strategic share buyback initiative
- Galaxy-backed loan enables FWDI to repurchase millions of shares
- SOL staking rewards help offset loan costs amid market downturn
Forward Industries has moved to tighten its capital structure while reinforcing its digital asset strategy through a sizable stock repurchase. The company also announced its intention to buy back approximately $27.4 million in shares, indicating that it remained focused on ensuring the performance of the equity aligned with its increased holdings of Solana.
The off-balance-sheet deal is the repurchase of approximately 6.16 million shares of an institutional investor. Consequently, the company’s overall share count is likely to decrease by approximately 7 percent. This decline is a direct result of its internal metric, which is based on Solana exposure per share, and the management uses it to gauge shareholder value.
To implement the repurchase, Forward borrowed $40 million from Galaxy Digital. It is worth noting that, at a finance cost of closer to 3.4 percent, the finance matures in less than 5 months. The design is a short-term strategy that maximizes liquidity without diluting shareholders over the long term.
Also, staked SOL serves as collateral for the loan, enabling the company to continue generating yields. Forward revealed that its assets under stake yield around 6.2 percent every year. As a result, the company continues to receive rewards and expand its capital raising for corporate activities.
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Market Pressure Shapes Timing of Buyback Strategy
The market’s recent performance has been an important factor in determining the timing of this decision. Forward Industries’ shares have fallen approximately 25% since the beginning of the year. Meanwhile, Solana has lost approximately 30 percent in the same time.
The company began building SOL in September 2025, when prices were around $240. The token is currently trading below $88, which is more than 60 percent below its previous levels. Nevertheless, this is a disadvantage, but Forward has grown its position instead of decreasing exposure.
In addition, the company currently holds slightly over 7 million SOL, valued at about 616 million. This makes it the largest known corporate owner of the asset. Compared with the next-largest treasury entity, this one has considerably fewer tokens.
In addition to its capital allocation policy, Forward also planned to lower operating costs. The company anticipates a negative core SG&A growth of almost 45 percent in the first and third fiscal quarters. These are cuts in service charges, legal costs, and vendor prices.
Forward Industries is integrating financial engineering and exposure to digital assets to recreate its balance sheet. With the help of a crypto-backed loan, the share buyback demonstrates that the company was prepared to focus on maximizing per-share value, while still believing in Solana over the long run.
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