Forward Industries, a publicly traded company with a treasury strategy centered on Solana, has launched a share repurchase program financed through a crypto-backed loan from Galaxy Digital LLC. The company announced Thursday that it will buy back 6,164,324 shares of its common stock from an unnamed institutional investor for approximately $27.4 million. Following the transaction, total shares outstanding will fall to 76,977,809. The move highlights a growing trend of corporations using digital asset holdings to execute traditional financial maneuvers.
To fund the repurchase, Forward Industries secured a $40 million loan from Galaxy Digital LLC at an interest rate of 3.4%. The loan is collateralized by the company’s SOL holdings, which total 7,013,536 Solana tokens valued at roughly $613 million at current market prices. This structure allows the company to access liquidity without selling its crypto reserves, while continuing to earn yield through staking.
The identity of the institutional investor selling shares back to the company has not been disclosed. Public filings indicate that only six institutional investors in Forward Industries hold a sufficient number of shares to account for the volume being repurchased. Data compiled by Fintel.io shows that Galaxy Digital LP held 8.68 million shares as of September 18, 2025, and Galaxy Group Investments LLC held 8.11 million shares as of February 18, 2026, making both entities among the few eligible sellers. Forward Industries did not respond to a request for comment prior to publication.
The buyback appears to fall under an authorization approved by Forward Industries in November, which permitted the company to repurchase up to $1 billion of its stock on an ongoing basis. At the time of that authorization, the company stated the program was intended to provide financial flexibility amid elevated volatility in the cryptocurrency market. That volatility has since worsened, with Solana’s price dropping below $90. Forward Industries’ stock has declined approximately 87% from its peak in September.
Forward Industries began building its Solana position aggressively last year, during a period when crypto treasury strategies gained widespread attention amid a broader bull market. The company has since accumulated the largest publicly traded SOL treasury of any firm. At least 18 other public companies have adopted comparable strategies, according to industry data.
The broader group of crypto treasury companies has faced mounting pressure as digital asset prices have fallen. By February, these firms collectively held more than $1.5 billion in unrealized losses tied to the market downturn. Forward Industries alone accounts for a significant share of those losses, with an estimated $972 million in unrealized declines.
Wojciech Kaszycki of crypto infrastructure firm BTCS told Cointelegraph that the sector’s ongoing volatility is likely to trigger widespread consolidation among crypto treasury companies. Many of these firms are facing a difficult environment in which falling crypto prices push their market valuations below the value of the digital assets on their balance sheets, while limited operating cash flow makes it increasingly difficult to sustain day-to-day operations. The situation underscores the risks inherent in treasury strategies that are heavily concentrated in volatile digital assets.
Originally reported by CoinTelegraph.
