Forward Industries Uses $40M Galaxy Loan for $27.4M Share Buyback Amid 89% Stock Decline

Leading Solana treasury firm Forward Industries (NASDAQ: FWDI) announced on March 19, 2026, that it will repurchase approximately 6.16 million shares for $27.4 million from an institutional investor, reducing its outstanding shares by 7.4% and increasing its SOL-per-share metric to 0.0662.

The buyback is financed through a $40 million digital asset-backed loan from Galaxy Digital at an average interest rate of 3.4% with a 4.9-month maturity, collateralized by staked SOL that continues earning approximately 6.2% annual yield. The move comes as FWDI shares have declined 89% from their September 2025 peak of $46.00, trading near $4.95, while Solana has fallen over 60% from the company’s average acquisition price of $232.

Share Repurchase Structure and Rationale

Transaction Details

Forward Industries entered into a privately negotiated agreement to repurchase 6,164,324 shares of its common stock from an institutional investor at a total cost of $27.4 million. Following the transaction, the company’s fully diluted shares outstanding will decrease from approximately 111.6 million to 105.9 million. As of March 18, Forward holds 7,013,536 SOL, resulting in SOL-per-share of 0.0662 compared to 0.0624 on December 31, representing an annualized increase of approximately 29%.

Financing Terms

The repurchase is funded through a $40 million Master Digital Currency Loan Agreement with Galaxy Digital at a weighted average annual interest rate of approximately 3.4% with an average weighted maturity of 4.9 months. The facility is secured by fwdSOL—Forward’s liquid staking token—held in the company’s treasury, with the critical feature that Forward continues to earn staking rewards on the underlying SOL while accessing low-cost capital.

Positive Carry Dynamics

The 3.4% borrowing cost sits significantly below the company’s staking yield of approximately 6.2%, creating a positive carry trade where Forward earns more on its collateral than it pays in interest. Chief Investment Officer Ryan Navi emphasized the efficiency: “By repurchasing shares at a discount to both our net asset value and current market price, and by securing attractively priced financing that allows us to maintain staking rewards on our collateral, we are able to return a meaningful block of shares to our treasury while continuing to compound our digital asset holdings.”

Shareholder Value Strategy

SOL-Per-Share Focus

Forward’s capital allocation strategy prioritizes increasing SOL-per-share rather than simply accumulating more SOL. The company will opportunistically repurchase shares when its stock trades at a significant discount to net asset value, effectively buying SOL at a discount through its equity. Navi explained: “If the stock trades at a significant discount to our NAV, then it makes more sense for us to continue to buy our stock rather than buying SOL in the open market, because we’re effectively buying more SOL at a discount when we buy our stock.”

Buyback Program Context

The repurchase falls under the previously authorized $1 billion share repurchase program approved by Forward’s board in November 2025. The company “routinely assesses market conditions to determine what the best risk-adjusted path is to drive SOL-per-share accretion,” according to Navi.

Financial Position and Unrealized Losses

Treasury Holdings

Forward currently holds just over 7 million SOL, valued at approximately $616 million at current prices of around $88. This makes Forward the largest known corporate holder of Solana by a significant margin, with the next-closest treasury, Solana Company, holding approximately 2.3 million SOL.

Paper Losses

The company’s aggressive accumulation began in September 2025 with an average acquisition price of approximately $232 per SOL, funded through a $1.65 billion private placement led by Galaxy Digital, Jump Crypto, and Multicoin Capital. With SOL currently trading near $88, Forward faces unrealized losses exceeding $1.1 billion, ranking as the sixth-largest paper loss among digital asset treasuries.

Stock Performance

FWDI shares have fallen approximately 25% year-to-date and 89% from the September 2025 peak of $46.00, closing at $4.95 on March 19, down 0.7% on the day. The stock trades at a significant discount to the company’s net asset value, creating the conditions that triggered the buyback.

Cost Reduction Initiatives

Concurrent with the buyback, Forward announced a significant cost reduction plan. SG&A expenses (excluding stock-based compensation and design segment SG&A) are projected to decrease by approximately 45% from $6.5 million in fiscal Q1 to an estimated $3.6 million by fiscal Q3. The reductions include lower fees under the services agreement with Galaxy Digital, reduced outside legal expenses, decreased marketing expenditures, lower third-party vendor costs, and other operational efficiencies.

Chairman Kyle Samani commented: “We are executing on a series of operational initiatives designed to reduce our cost structure and improve operating leverage. We expect these efforts to drive a material decline in SG&A over the coming quarters… Combined with this share repurchase, which allows us to increase SOL-per-share while continuing to earn staking rewards on our collateral, we are building a more efficient platform that compounds value for shareholders over time.”

Frequently Asked Questions

How did Forward Industries finance its share buyback?

Forward secured a $40 million digital asset-backed loan from Galaxy Digital at approximately 3.4% APR with a 4.9-month maturity. The loan is collateralized by fwdSOL, the company’s liquid staking token, while Forward continues earning staking rewards on the underlying SOL at approximately 6.2% annually, creating a positive carry trade.

Why is Forward buying back shares instead of more SOL?

The company’s strategy prioritizes increasing SOL-per-share over absolute SOL accumulation. When FWDI stock trades at a significant discount to the company’s net asset value, share repurchases effectively buy SOL at a discount through the equity. The buyback reduces outstanding shares by 7.4% and increased SOL-per-share by approximately 29% annualized.

What is Forward’s current Solana position and unrealized loss?

Forward holds just over 7 million SOL valued at approximately $616 million, making it the largest known corporate Solana holder. The company acquired most of its position in September 2025 at an average price of $232, creating unrealized paper losses exceeding $1.1 billion as SOL trades near $88.