Solana: Forward Industries Holds 7M Tokens Amid $1B Losses

Nasdaq-listed Forward Industries stated this week that it continues to hold nearly 7 million Solana (SOL) tokens despite mounting unrealized losses caused by the recent crypto market downturn.

The company remains the largest publicly traded corporate holder of SOL, positioning itself for long-term expansion even as crypto treasury firms face financial strain.

Currently, Solana is trading in a narrow range, between $85 and $88, according to the latest trading data. In such a scenario, the forward stake is valued at close to $600 million, while the average acquisition cost is approximately $232 per token.

This implies that the difference translates to nearly $1 billion in paper losses, which is exerting pressure on the companies that entered the crypto space at the earlier peaks in the market.

However, recent weakness in the markets has caused several crypto-focused treasury firms to sell off these assets or restructure their liabilities to maintain liquidity.

Forward Industries, though, has a unique position in that the firm does not have any outstanding corporate debt, which allows the firm to look for acquisitions despite the trend of other firms reducing their exposure to digital asset markets.

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Capital Strategy Supports Expansion Plans

Forward reoriented its operations as of 2025 after raising about $1.65 billion in financing, backed by Galaxy Digital, Jump Crypto, and Multicoin Capital. This financing helped the firm focus on the hoarding and expansion of its treasuries on the Solana network.

Management risks SOL assets to generate estimated annual yields of 6% to 7%. This turns the assets into a perpetual income-generating machine. A partnership with Sanctum helped to deploy the fwdSOL rollout, which kept the assets liquid and generated staking rewards.

Another reason executives cite is that borrowing costs in decentralized finance markets may be lower than staking yields, which increases capital efficiency. With crypto equities trading at subdued levels, executives see opportunities to grow even as peers face challenges related to liquidity.

Crypto Treasury Consolidation Accelerates Rapidly

Leadership describes Forward as a permanent capital vehicle rather than a quick-flip trader. They focus on backing tokenized assets and ventures that have durable cash flows, which is consistent with the growth of the Solana network.

Managers argue that the speed of Solana and lower transaction costs make the platform attractive for everyday consumer applications as well as financial settlement services, despite the historical volatility driven by speculative cycles. They see upcoming applications as a driver of long-term demand for the network.

Industry observers believe that consolidation among crypto treasuries will continue to accelerate as stronger players continue to acquire struggling competitors. However, analysts have noted that volatility is a major risk to crypto treasuries.

The regulatory framework for corporate crypto assets is changing globally, with new frameworks being developed in the US and the European Union, which is adding another layer of complexity to treasury operations.

Why This Matters

Corporate cryptocurrency treasuries are balancing on a tightrope of balance sheet risk as falling token prices reshape the growth strategies of public companies.

When big cryptocurrency holdings are on the balance sheet, investors feel the volatility as the losses on the treasuries directly impact the share prices.

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