Key Takeaways:
Forward Industries acquired over 500,000 Solana tokens in its fiscal third quarter, bringing its total treasury to 7.55 million SOL worth about $576 million, the company said Wednesday.
"Our mandate is simple: maximize SOL per share and create long-term shareholder value," Ryan Navi, chief investment officer at Forward Industries, said. "By repurchasing shares when Forward trades at a discount to NAV and issuing equity when our shares trade at a premium, we dynamically allocate capital in a way that compounds SOL per share."
The Austin, Texas-based company purchased the tokens at an average price of about $79 per SOL. SOL-per-fully diluted share grew 36% annualized to 0.0729 as of June 30 from 0.0669 at the end of March. Forward sold 93,642 shares through its at-the-market equity offering program during the quarter.
Forward, which describes itself as the largest Solana treasury company, was added to the Russell 2000 and Russell 3000 indexes in June, broadening its access to institutional capital. The company can issue equity when its shares trade above net asset value and repurchase shares when they trade at a discount, creating a capital formation loop to fund further SOL accumulation.
Cantor Fitzgerald initiated coverage of Forward with an Overweight rating Wednesday. Analysts Gareth Gacetta and Nathan said the "next major shift in financial infrastructure is occurring on-chain, with digital assets positioned to capture a growing share of payments, credit, trading, and asset issuance." The firm highlighted Forward's access to public-market capital as a structural advantage over private crypto funds that lack a comparable equity issuance mechanism.
Forward generates staking yield on its SOL holdings ranging from 6.4% to 7.3%. The company has established borrowing facilities using fwdSOL as collateral with institutional partners including Galaxy Digital and Jump Crypto, allowing it to borrow at a cost of capital below its staking yield and generate positive carry.
The company's common shares outstanding fell to 73.8 million as of June 30 from 76.3 million at the end of March, reflecting share repurchases when FWDI traded below net asset value. Forward's SOL-per-fully diluted share increased to 0.0729 from 0.0669 over the same period.
FWDI shares closed up more than 17% Wednesday at $4.75, according to MarketWatch data. The stock has gained more than 120% year to date as the company's Solana treasury strategy has attracted investor interest.
This article is for informational purposes only and does not constitute investment advice.
