Forward Industries Launches $27 M Share Repurchase, Financing the Deal with a Solana‑Backed Loan from Galaxy Digital
New York, March 20 2026 – Publicly traded Forward Industries (NASDAQ: FWDI), the firm renowned for its Solana‑centric treasury, announced on Thursday that it will repurchase 6,164,324 shares of its common stock from an institutional holder for roughly $27.4 million. The transaction reduces the company’s outstanding share count to 76,977,809.
The buyback is being financed through a $40 million credit facility provided by Galaxy Digital LLC. The loan, priced at an annual 3.4 % interest rate, is secured by Forward’s inventory of 7,013,536 SOL tokens – currently valued at about $613 million. By leveraging its digital‑asset holdings rather than liquidating them, Forward can obtain immediate cash while continuing to earn yield from staking its Solana positions.
Transaction Details
| Item | Description |
|---|---|
| Shares repurchased | 6,164,324 common shares |
| Approx. cost | $27.4 million |
| Post‑buyback shares outstanding | 76,977,809 |
| Funding source | $40 million loan from Galaxy Digital LLC |
| Loan rate | 3.4 % per annum |
| Collateral | 7,013,536 SOL (≈ $613 million) |
| Primary seller | Unnamed institutional investor (identity not disclosed) |
Public filings show that only six institutional owners possessed enough shares to satisfy the buyback size. Among them are Galaxy Digital LP (8.68 million shares as of 18 Sept 2025) and Galaxy Group Investments LLC (8.11 million shares as of 18 Feb 2026), suggesting Galaxy may be the selling party, though the company declined to confirm.
Context – A $1 Billion Buyback Authorization
The repurchase falls under the broader $1 billion share‑repurchase program approved by Forward’s board in November 2024. That authorization was intended to give the company flexibility amid the heightened volatility that has characterized the crypto market over the past year. With Solana’s price trading below $90, Forward’s stock has fallen about 87 % from its September 2025 peak, making capital‑return initiatives especially salient for shareholders.
Why a Crypto‑Backed Loan?
Forward’s treasury strategy, built around a sizeable Solana allocation, mirrors a growing trend among publicly listed firms that hold digital assets. By borrowing against SOL rather than selling it, Forward preserves the upside potential of its crypto holdings and maintains staking rewards, which continue to generate incremental income. The loan structure also demonstrates the expanding market for collateralized crypto credit, a service that firms such as Galaxy Digital have been pioneering.
Industry Implications
- Liquidity without liquidation – Companies can tap into the value of their digital‑asset reserves without triggering taxable events or reducing future yield.
- Cost of capital – A 3.4 % borrowing rate is competitive compared with traditional unsecured corporate debt, suggesting that crypto‑backed financing may become an attractive alternative for firms with sizable token holdings.
- Share‑price support – In a declining market, share repurchases provide a mechanism to prop up equity prices, potentially narrowing the discount between market value and intrinsic value derived from the treasury.
Risks and Challenges
Forward’s strategy is not without exposure. The company’s Solana holdings represent over $600 million in collateral; a sharp decline in SOL could erode the loan‑to‑value ratio and trigger margin calls or higher financing costs. Moreover, the overall crypto‑treasury sector is grappling with more than $1.5 billion in unrealized losses, a figure driven largely by Forward’s own portfolio, which has recorded an estimated $972 million decline in value.
Analysts note that continued market weakness may pressure other firms with similar treasury models to consolidate or seek alternative financing, as cash‑flow constraints tighten.
Key Takeaways
- Forward Industries is repurchasing $27 million of its own stock, funded by a $40 million loan secured with its Solana holdings.
- The loan, offered by Galaxy Digital at 3.4 % interest, allows Forward to preserve its crypto assets while generating liquidity for shareholder returns.
- The move aligns with a previously authorized $1 billion buyback program aimed at providing flexibility amid crypto‑market volatility.
- While the structure highlights the growing utility of crypto‑backed credit, it also underscores the risk profile for firms heavily weighted toward volatile digital assets.
Forward’s latest maneuver illustrates how corporate finance is adapting to the digital‑asset era, blending traditional share‑repurchase tactics with innovative, token‑collateralized financing. The outcome will likely be watched closely by other publicly listed companies considering similar treasury strategies.
Source: https://cointelegraph.com/news/forward-industries-solana-loan-share-buyback-galaxy?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
