Forward Industries Funds $27.4M Share Buyback, Deepens Solana Treasury Focus

Forward uses staked SOL and a Galaxy loan to fund buyback while cutting costs amid declining stock and crypto prices.

Forward Industries has announced a major share repurchase as it sharpens its focus on a Solana-based treasury model. Interestingly, the move comes during a period of declining stock performance and weaker crypto prices. Management is using balance sheet restructuring to improve shareholder exposure to its digital asset holdings. A short-term loan backed by staked Solana plays a central role in the strategy.

Staked SOL Used as Collateral for $27.4M Share Buyback

Forward Industries will repurchase roughly $27.4 million worth of its shares in a private deal. The company plans to buy about 6.16 million shares from an institutional investor. As contained in a Thursday disclosure, the transaction will reduce total shares outstanding by around 7%.

Management expects the buyback to improve its SOL per share metric. This figure is a key measure the firm uses to present value to shareholders. Fewer shares combined with existing holdings could increase exposure to its Solana reserves.

Funding for the repurchase is provided by a $40 million loan secured from Galaxy Digital. The loan carries an average interest rate of about 3.4% and matures in under five months. Terms reflect a short-duration approach rather than long-term debt expansion.

Collateral for the loan includes the company’s staked SOL. Those assets currently yield an estimated 6.2% annually. Staking income continues while the company gains access to liquidity for the buyback.

Forward Industries Targets Cost Reduction as Stock and SOL Slide

Forward Industries’ stock has fallen about 25% since the start of the year. Over the same period, Solana has dropped roughly 30%. Declines in both equity and underlying assets have pressured overall valuation.

Management appears to be using the buyback to tighten capital structure during this downturn. Reducing share count may improve per-share exposure even if asset prices remain weak.

Meanwhile, Forward Industries expects a sharp decline in expenses over the coming quarters. Core SG&A costs are projected to fall by about 45% between the first and third fiscal quarters.

Lower service fees, reduced legal costs, and smaller vendor payments are expected to drive those savings. Cost cuts could help offset recent market pressure and support near-term financial stability.

Forward Industries continues to align its strategy with digital assets, placing Solana at the center of its treasury approach.

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