Key facts
- Forward Industries acquired over 500,000 SOL tokens in its fiscal third quarter.
- The firm's treasury now holds approximately 7.55 million SOL, valued at around $573 million.
- Shares in Forward Industries surged nearly 17% to $4.94 after the announcement.
- The company aims to maximize SOL per share and create long-term shareholder value.
- Forward Industries has over $1 billion in unrealized losses on its SOL holdings from previous purchases.
Forward Industries' shares experienced a significant jump, rising nearly 17% to $4.94, after the company announced a substantial acquisition of Solana (SOL) tokens during its fiscal third quarter. The firm added over 500,000 SOL, valued at approximately $38 million, to its treasury. This strategic move brings its total holdings to around 7.55 million SOL, currently worth an estimated $573 million, as Solana trades above $76.
Ryan Navi, CIO of Forward Industries, stated the company's mandate is to maximize SOL per share and enhance shareholder value, demonstrating their ability to acquire SOL accretively. The firm utilized its at-the-market offering, selling common shares to fund these acquisitions. Despite the recent surge, Forward Industries' shares have seen a 26% decline over the past six months and are significantly below their 52-week high.
The company measures its performance by SOL held per share, which has increased to 0.0729, representing a 9% growth in the last three months. Forward Industries also employs a dynamic capital allocation strategy, repurchasing shares when trading at a discount to net asset value and issuing equity when at a premium to compound SOL per share. The firm anticipates improved liquidity and visibility following its inclusion in the Russell 2000 and 3000 indexes.
Previously, in June, Forward Industries attempted to acquire other Solana-focused companies but was unsuccessful. Last year, the firm purchased 6.8 million SOL, establishing a treasury valued at $1.6 billion. However, due to accumulating the bulk of its holdings at an average price of $232 per SOL, the company currently faces over $1 billion in unrealized losses.