Forward Industries is strengthening its investment in Solana, having recently registered a $4 billion “at-the-market” (ATM) share offering with the U.S. Securities and Exchange Commission on September 17.
The company stated that the funds generated from this program will be used for general business operations, covering working capital, strategic acquisitions, and importantly, increasing its Solana holdings.
According to financial data from Google, Forward Industries stock experienced a dip of 7% in early trading, settling at $34 per share following the announcement.
Despite the market’s initial response, company leaders are portraying the action as a smart move to free up capital while improving the company’s financial stability.
Kyle Samani, Chairman of the Board, commented:
“This offering provides Forward Industries with a versatile and effective way to secure and strategically allocate funds to support our Solana investment strategy.”
He further noted that this program builds upon the company’s previous actions, which included securing the largest Solana-focused treasury to date and acquiring over 6.8 million SOL tokens.
Notably, Forward Industries obtained these tokens through a $1.65 billion transaction spearheaded by Galaxy Digital, Jump Crypto, and Multicoin Capital.
Solana Treasuries Grow in Popularity
Forward’s determined accumulation reflects a wider industry trend of businesses incorporating Solana into their treasury management strategies.
Information from the Strategic Solana Reserve tracker indicates that corporate ownership of the token has recently risen to 17.17 million SOL, valued at over $4 billion. These holdings account for nearly 3% of the total Solana in circulation.
In a post on X, Michael Marcantonio, Head of DeFi at Galaxy, suggested that numerous companies are adopting Solana treasuries because they have the potential to outperform their Bitcoin and Ethereum equivalents due to several inherent advantages.
According to him, Solana’s increased volatility creates opportunities for sophisticated financial maneuvers involving bonds and warrants, which could accelerate the accumulation of tokens for companies building their treasuries. In addition, the staking yield offered by Solana, currently around 7-8% compared to Ethereum’s 3-4%, provides a compounding effect that steadily enhances net asset value over time.
Marcantonio also highlighted Solana’s potential undervaluation, emphasizing that despite its smaller market cap, the blockchain network handles a greater volume of transactions and supports a larger user base than Ethereum.
Given this, he concluded that:
“If companies with Solana treasuries are well-managed, they can offer considerable upside potential (because NAV/share can increase both through effective treasury management and market price adjustments of SOL relative to ETH).”