Forward Industries Shares Jump 17% After $38M SOL Acquisition
In brief
- Forward Industries shares jumped 17% to $4.94 after $38M SOL acquisition in Q3.
- Firm now holds 7.55 million SOL valued at roughly $579 million, up 9% per share.
- Treasury accumulated mostly at $232 per SOL, facing over $1 billion in unrealized losses.
- Russell 2000 and 3000 index inclusion expected to boost liquidity and visibility.
Treasury Growth and Per-Share Metrics
Forward now maintains a balance sheet with around 7.55 million SOL, currently valued around $579 million. The acquisition marks a significant step in the firm's strategy to grow its SOL per share. SOL held per share has grown to 0.0729, or around 9% in the last three months.
To fund the purchase, Forward utilized its at-the-market offering, selling 93,642 common shares during the quarter. This capital formation approach allows the firm to raise cash without diluting existing shareholders significantly.
The Cost-Basis Challenge
The gains mask a deeper tension. Forward accumulated the bulk of its treasury at an average price of $232 per SOL and now has more than $1 billion in unrealized losses. The firm bought most of its holdings near the peak of the 2021 bull market. Recent acquisitions at $79 per SOL represent a far better entry point.
SOL is up about 3.3% in the last 24 hours, but has fallen more than 74% from its all-time high of $293. Forward's stock reflects this volatility. Shares have fallen around 26% in the last six months and are now 89% off their 52-week high of $46.
Structural Tailwinds
Forward received some structural support this quarter. The firm believes its shares will experience improved liquidity and increased visibility as a result of inclusion into the Russell 2000 and 3000 indexes. Index inclusion typically brings passive inflows and broader institutional awareness.
In June, Forward attempted to acquire Solana Company and Brera Holdings but was unsuccessful. That setback didn't derail its core strategy of organic accumulation.
"Our mandate is simple: maximize SOL per share and create long-term shareholder value. Our execution this quarter demonstrates our ability to employ multiple capital formation strategies to acquire additional SOL in a highly accretive manner." — Ryan Navi, CIO of Forward Industries
Last year, Forward purchased its first 6.8 million SOL, amassing a treasury of around $1.6 billion worth of cryptocurrency. The firm has since deployed additional capital through multiple offerings and acquisitions, betting that SOL will eventually recover toward higher valuations.
