Forward Industries Boosts Solana Treasury With $40M Buy, FWDI Stock Pops 11%

Forward Industries has affirmed its position as the largest Solana treasury in the market. The Nasdaq-listed company announced that it added approximately $40 million worth of SOL to its treasury during the quarter ended June 30. 

The purchase increased its total holdings to 7.55 million SOL. Investors welcomed the update. Shares of Forward Industries ended the trading session on Monday at $4.70, up 11.35% on the day after touching an intraday high of $5.04. Trading volume also climbed above 3 million shares.

Forward Industries builds up its crypto treasury

According to the press release, the newly acquired tokens were purchased at an average price of about $79 per coin. With this new purchase, the value of its holdings now sits at $576 million based on current market prices.

The company also reported that SOL per fully diluted share increased to 0.0729 from 0.0669 in Q2. That represents annualized growth of about 36%. This is a metric the company uses to calculate how much asset exposure each shareholder has.

Chief Investment Officer Ryan Navi said the company's goal is to increase crypto holdings per share for its investors. As such, the company plans to issue more shares when they trade above net asset value. They would also repurchase stock when shares trade at a discount. The firm also sold 93,642 shares through its at-the-market equity program during the quarter.

Growing lead over other Solana treasury firms

This new purchase expands the lead Forward Industries has over other firms. Data from Coingecko shows that its 7.55 million token treasury is larger even when putting together the combined holdings of the next three biggest Solana treasury companies. DeFi Development Corp., Upexi, and Sharps Technology together hold about 6.47 million tokens.

Notably, the company believes its recent inclusion in the Russell 2000 and Russell 3000 indexes could help attract more institutional investors. Navi said:

It is also worth mentioning that Forward approached smaller treasury firms about possible acquisitions. The strategy would allow the company to create even larger and more liquid investment vehicles for its shareholders.

SOL recovery offers some momentum

The buying comes after a difficult period for the company. Forward Industries had reported a net loss of $283.1 million in Q1. The loss was mostly tied to fair-value adjustments on its crypto holdings as market prices weakened.

Meanwhile, the coin has seen a positive shift in recent days. SOL has gained more than 13% over the past week. It is currently up over 4% as Bitcoin reclaimed the $60,000 mark.

New developments, like its new on-chain prediction markets and expanding decentralized finance activity, have helped change sentiment surrounding the coin.

Because the company's balance sheet is tied to the value of its Solana holdings, future price movements could have some impact on its next financial results.