- Forward Industries is repurchasing ~6.16M shares using a US$40M (AU$56.40M) loan backed by its Solana holdings.
- The structure lets the company raise liquidity without selling crypto, while continuing to earn staking yield.
- The move is aimed at improving per-share exposure to SOL and tightening costs during a weaker market.
Forward Industries has moved to buy back approximately 6.16 million shares for US$27.4 million (AU$38.63 million), as it restructures its balance sheet around a Solana-focused treasury model. The deal, conducted with an institutional investor, is expected to reduce total shares outstanding by about 7%. This forms part of an ongoing buyback programme authorised at up to US$1 billion (AU$1.41 billion).
Funding for the transaction comes from a US$40 million (AU$56.40 million) loan arranged with Galaxy Digital. The loan is collateralised by Forward’s staked SOL holdings, allowing the firm to retain ownership of its digital assets while accessing liquidity. The company holds more than 7 million SOL, valued at over US$613 million (AU$864.33 million), making it one of the largest public holders of the token.
Related: Kalshi Slams Arizona Charges as ‘Overstep’ in Prediction Market Showdown
Using Crypto as Collateral
Because the collateral consists of staked assets, Forward continues to earn an estimated 6.2% annual yield while the loan is in place. This dual approach enables the firm to generate income and deploy capital simultaneously. The loan’s 3.4% interest rate further reflects a relatively low-cost financing structure.
The buyback is intended to improve the firm’s “SOL-per-share” metric, a key measure used to assess shareholder exposure to its crypto reserves. Management has indicated that repurchases are prioritised when the company’s shares trade below their net asset value.
At the same time, Forward is targeting operational efficiencies, with significant cost reductions expected to support financial stability amid declining crypto and equity prices.
Related: US Senate Eyes April Vote on Landmark Crypto Market Structure Bill
Credit: Source link
