Forward Industries Strengthens Solana Commitment with $4 Billion Equity Offering Program
Forward Industries is doubling down on its support for Solana by initiating a $4 billion at-the-market (ATM) equity offering program, as disclosed in a filing with the US Securities and Exchange Commission on Sept. 17.
The company’s decision to launch this program is aimed at financing general corporate needs, such as working capital, strategic acquisitions, and expanding its holdings in Solana’s treasury. Following the announcement, shares of Forward Industries experienced a 7% decline to $34 in early trading, according to Google Finance data.
Despite the initial market response, company executives view this move as a strategic step to unlock capital while reinforcing their balance sheet. Kyle Samani, chairman of the company board, emphasized the significance of the offering, stating, “Through this offering, Forward Industries gains a flexible and efficient mechanism to raise and methodically deploy capital in support of our Solana treasury strategy.”
Furthermore, Samani highlighted the firm’s previous efforts, including the completion of a significant Solana-focused treasury raise and the acquisition of over 6.8 million SOL tokens. Notably, these tokens were obtained through a $1.65 billion transaction facilitated by Galaxy Digital, Jump Crypto, and Multicoin Capital.
Solana Treasury Expansion Trend
Forward Industries’ proactive accumulation of Solana tokens mirrors a broader trend among companies integrating Solana into their treasury strategies. Data from the Strategic Solana Reserve tracker reveals that corporate holdings of SOL have recently surged to 17.17 million tokens, valued at over $4 billion, representing nearly 3% of Solana’s circulating supply.
In a post shared by Michael Marcantonio, Galaxy’s head of DeFi, he emphasized the advantages of Solana treasuries over Bitcoin and Ethereum counterparts. Marcantonio highlighted Solana’s higher volatility, which creates opportunities for financial engineering through bonds and warrants, potentially accelerating token accumulation for treasury firms. Additionally, Solana’s staking yield, currently outperforming Ethereum at 7-8%, offers a compounding effect that steadily enhances net asset value.
Marcantonio also underscored Solana’s relative undervaluation despite processing more transactions and supporting more users than Ethereum. He suggested that well-executed strategies by Solana treasury companies could yield asymmetric upside, benefiting from both treasury mechanics and market repricing of SOL relative to ETH.
In Conclusion
Forward Industries’ decision to launch a $4 billion equity offering program underscores its commitment to Solana and the broader trend of companies diversifying their treasuries with SOL tokens. The strategic move aims to bolster the company’s financial position while capitalizing on Solana’s unique advantages in the blockchain space. With Solana’s growing popularity and potential for market outperformance, companies like Forward Industries are positioning themselves for long-term success in the evolving crypto landscape.