Forward Industries (FWDI) Stock Buyback Funded by $40M Galaxy Digital Crypto Loan

TLDR

• Forward Industries is repurchasing 6.16 million of its own stock for ~$27.4 million, reducing total shares outstanding by roughly 7%.
• The buyback is funded by a $40 million loan from Galaxy Digital at 3.4% interest, collateralized by Forward’s staked SOL holdings.
• Forward holds 7.01 million SOL worth ~$616 million, making it the largest known corporate holder of the token.
• FWDI stock is down ~87% from its September 2025 peak; SOL has fallen over 60% from levels when Forward began accumulating.
• Forward also expects core operating costs to fall ~45% between its fiscal Q1 and Q3.

Forward Industries is buying back roughly $27.4 million of its own stock using borrowed money backed by its Solana treasury. The company secured a $40 million loan from Galaxy Digital LLC at an interest rate of 3.4% to fund the move.

Forward Industries, Inc., FWDI

The buyback covers 6,164,324 shares purchased from an unnamed institutional investor in a private transaction. After the repurchase, Forward’s total share count drops to just under 77 million — a reduction of about 7%.

Forward holds 7,013,536 SOL tokens, currently worth around $616 million. The loan is collateralized by that staked Solana, which earns roughly 6.2% annually in staking rewards.

That means the company is effectively borrowing at 3.4% while earning 6.2% on the collateral. The structure lets Forward access cash without selling any of its crypto holdings.

The buyback is part of a $1 billion repurchase program Forward authorized in November 2025. At the time, the company cited financial flexibility as the key reason for the program.

The timing matters. FWDI stock has dropped about 87% from its September 2025 peak and is down roughly 25% year-to-date.

SOL itself hasn’t fared much better. It’s fallen around 30% this year and is now trading near $88 — down more than 60% from the ~$240 level when Forward first started buying.

Forward began stockpiling SOL aggressively in September 2025, when the token was near its highs. That timing has resulted in roughly $972 million in unrealized losses on its treasury position.

At least 18 other public companies have adopted similar Solana treasury strategies. Collectively, those firms held more than $1.5 billion in unrealized losses as of February, with Forward accounting for the lion’s share.

SOL Per Share: The Metric Forward Is Leaning On

Forward frames the buyback as a way to boost its SOL-per-share metric. Fewer shares outstanding means each remaining share represents a larger slice of the company’s Solana holdings.

That framing is central to how the company pitches shareholder value — especially as its stock trades well below its peak.

The next-closest public Solana treasury, Solana Company, holds approximately 2.3 million SOL. Forward’s 7 million-plus puts it in a league of its own among corporate holders.

Costs Coming Down

Forward also said it expects operating expenses to drop in the coming quarters. Core SG&A costs are projected to fall about 45% between its fiscal first and third quarters.

Lower service fees, legal costs, and vendor spending are driving that reduction. The loan from Galaxy Digital matures in under five months.

The maturity date gives Forward a short window. If SOL prices don’t recover, rolling or repaying the loan could become a pressure point. Forward has not commented on repayment plans if that scenario plays out.

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