Key takeaways
- Forward Industries increases treasury to 8.73 million SOL
- Company secures $50 million in staking-backed financing
- Solana price weakness raises fresh collateral concerns
Forward Industries (NASDAQ: FWDI) has increased its Solana treasury to approximately 8.73 million SOL, expanding its cryptocurrency exposure even as the token approaches the psychologically important $80 level.
According to its November 10 SEC disclosure, the company added 226,396 SOL and SOL equivalents between September 30 and November 9, raising its total holdings from 8.50 million to 8.73 million tokens.
Forward Industries Controls Nearly 1.5% of Solana Supply
Forward Industries now holds approximately 1.5% of Solana's circulating supply, making it one of the largest publicly traded holders of the cryptocurrency.
Its treasury increased 2.7% over the latest reporting period, while SOL per fully diluted share climbed from 0.0806 to 0.0824.
That represents 2.3% growth in SOL per share over 40 days, although the company’s annualized growth estimate of approximately 21% assumes that pace continues.
The additional tokens carried a reported average cost of $75 each, but that figure includes staking rewards assigned no cash acquisition cost.
Forward has continued its SOL accumulation strategy despite substantial volatility since its initial large-scale purchases.
$50 Million Credit Facility Adds Leverage to SOL Strategy
Alongside its treasury update, Forward announced a two-year, $50 million credit facility secured by SOL held in its treasury.
The unnamed lender is a federally chartered, FDIC-insured national bank. The facility carries an interest rate of SOFR plus 150 basis points.
Importantly, the pledged SOL can remain staked and continue generating network rewards, without rehypothecation by the lender.
However, borrowing against cryptocurrency creates additional risks if collateral values decline sharply.
Forward previously faced significant unrealized treasury losses after accumulating millions of SOL at substantially higher prices.
Its newly disclosed net asset value also declined from approximately $870.4 million on September 30 to $600.3 million on November 9, despite increasing token holdings.
Institutional debt outstanding rose from $167.5 million to $187.5 million over the same period.
These figures underscore the challenges facing corporate Solana treasury companies when falling token prices offset additional accumulation.
Solana Nears $80 as Forward Expands Into Tokenized Housing
Forward is also diversifying its treasury strategy through a commitment of up to $50 million to USHP, a tokenized investment product tracking US residential property prices.
The company expects to use potential dollar-denominated income from the investment to support additional SOL accumulation.
It also added Barclays as a sales agent alongside Cantor Fitzgerald for its existing at-the-market equity offering program.
The expansion comes as SOL approaches the $80 downside level previously identified during the October market correction.
A further decline could increase pressure on Forward's collateral position and balance sheet, although the company has not disclosed an immediate margin call.
Previous large SOL transfers also attracted attention because of concerns about potential treasury selling.
