Forward Industries Executes Share Repurchase Initiative Through Solana-Collateralized Financing
In a $27.4 million share buyback initiative, Forward Industries secures financing through a Solana-backed credit facility from Galaxy Digital, demonstrating the growing integration of digital asset treasuries in mainstream corporate finance operations.
A publicly listed corporation with a treasury strategy centered on Solana, Forward Industries, has initiated a stock repurchase initiative financed via a digital asset-backed credit facility from Galaxy Digital LLC, demonstrating the expanding role that cryptocurrency holdings are playing within conventional corporate financial operations.
In an announcement made Thursday, the company disclosed plans to acquire 6,164,324 common stock shares from an institutional investor whose identity remains undisclosed, paying approximately $27.4 million and bringing the total outstanding shares down to 76,977,809.
An inquiry sent by Cointelegraph via email to Forward Industries requesting additional details regarding the institutional investor conducting the sale remained unanswered at the time this article went to press.
Data from publicly available regulatory filings shows that merely six institutional entities holding Forward Industries shares possess sufficient volume to complete a sale of this magnitude to the company. Based on filing information aggregated by Fintel.io, among these shareholders are Galaxy Digital LP (holding 8.68 million shares, as reported on Sept. 18, 2025) along with Galaxy Group Investments LLC (holding 8.11 million shares, as reported on Feb. 18, 2026.)
The repurchase program is being financed through a $40 million credit facility that Forward obtained from Galaxy Digital LLC, carrying an interest rate of 3.4%. The company's Solana (SOL) holdings serve as collateral for the loan, totaling 7,013,536 SOL — representing a value of roughly $613 million based on prevailing market valuations.
This financing arrangement enables Forward to obtain necessary liquidity while avoiding the sale of its cryptocurrency reserves, simultaneously allowing the company to continue earning yield via staking activities. The transaction exemplifies an emerging pattern of corporations utilizing their digital asset holdings to refine capital structures and potentially deliver improved returns to shareholders.
The stock repurchase initiative seems to fall under Forward Industries' authorization from November to acquire up to $1 billion worth of its own shares through an ongoing program. When initially announced, the company indicated that the program would deliver financial flexibility during periods of increased volatility within cryptocurrency markets.
Market turbulence has escalated in the months since, with Solana's price dropping to levels under $90. The repurchase effort could additionally provide support for Forward Industries' stock price, which has experienced an 87% decline from the high point reached in September.
Crypto treasury strategies face pressure
Forward Industries commenced an aggressive Solana acquisition campaign during the previous year, coinciding with the period when cryptocurrency treasury approaches gained widespread adoption throughout the bull market cycle. The firm has subsequently assembled the most substantial publicly traded SOL treasury position, joining at least 18 additional public corporations that have implemented comparable strategies, based on data from the industry.
As of February, these corporations were holding more than $1.5 billion in unrealized losses connected to the wider cryptocurrency market correction. A substantial share of these losses can be traced to Forward Industries, which is experiencing approximately $972 million in paper losses.
The volatility characterizing this sector will probably lead to widespread consolidation throughout crypto treasury-focused companies, according to Wojciech Kaszycki from cryptocurrency infrastructure firm BTCS, who shared this perspective with Cointelegraph.
Numerous treasury-focused companies are experiencing significant pressure as decreasing cryptocurrency valuations drive their market capitalizations to levels beneath the value of their digital asset holdings, while constrained cash flow creates additional challenges in maintaining ongoing operations.