Forward Industries is strengthening its presence in the Solana (SOL) ecosystem by launching a billion-dollar share repurchase program. The initiative, which will run until September 30, 2027, underlines the company's commitment to Solana, of which it holds the largest holdings among listed companies.
In brief
- Forward Industries' board of directors approved a $1 billion stock repurchase program, valid through September 2027, with repurchases possible on the open market, via block trades or private agreements.
- The company holds over 6.8 million SOL, making it the largest corporate treasury in Solana, valued at over $1 billion.
Board approval and buyout structure
The company's board of directors approved the program on November 3, authorizing Forward Industries to repurchase up to $1 billion of its common stock. The plan allows the company to repurchase its shares gradually, using a combination of methods. Repurchases will be able to take place on the open market, through block transactions or through private agreements, providing the company with increased flexibility to adjust its capital according to market conditions.
Forward Industries plans to conduct these repurchases in compliance with Securities and Exchange Commission (SEC) rules and may utilize Rule 10b5-1 repurchase plans, which permit such transactions without the risk of suspected insider trading.
Commenting on the initiative, Kyle Samani, Chairman of the Board of Directors, said that this buyout reflects confidence in the company's approach and the Solana ecosystem, and is part of the company's efforts to create long-term value for shareholdersnoting that the registration for resale followed a recent PIPE transaction.
Samani also stated that “The authorization gives us the flexibility to return capital to shareholders when we believe our stock is trading below its intrinsic value, while continuing our initiatives related to treasury and operations around Solana. »
Solana detentions and market pressures
Forward Industries maintains a significant position in Solana, holding over 6.8 million SOL. According to CoinGecko data, this stake is valued at approximately $1.07 billionmaking it the largest Solana corporate treasury.
At the same time, the company's stock fell about 25% in a single day after the buyout was announced. This decline coincides with a general decline in stocks exposed to the cryptocurrency sector. Despite significant SOL holdings and a structured buyback program, Forward Industries faced downward pressure as investors reacted to broader market trends.
Solana itself has seen a similar trajectory, falling more than 19% in the past week and more than 3% in the past 24 hours. The token hit $148 on Tuesday, its lowest level since July 9, as the broader cryptocurrency market continues to struggle.
Recent market weakness reflects broader challenges for companies that adopted a crypto treasury model during the bull run. These companies have accumulated significant reserves of digital assets to support their operations and explore higher growth opportunities. However, current conditions are putting this strategy to the test.
Experts at Standard Chartered point out that many of these companies are now under pressure, with enterprise values below the market value of their cryptocurrency holdings, compressing their net market value and creating real valuation pressure.
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