In recent months, there has been a sharp increase in the number of publicly traded companies adopting a crypto treasury strategy. Forward Industries has just joined this trend with the purchase of $1.58 billion in SOL cryptocurrency from Solana.
Forward Industries: purchases $1.58 billion worth of SOL
At the end of August, it was announced that crypto companies Galaxy Digital, Multicoin Capital, and Jump Crypto were organizing to develop a corporate treasury dedicated to Solana (SOL). The goal: to raise $1 billion to complete this project as quickly as possible.
This operation is fully in line with the current trend of crypto corporate treasuries, which are now widely open to cryptocurrencies other than Bitcoin. In the case of Solana, 16 companies currently hold more than $10 million worth of SOL, for an estimated total of $2.4 billion at the current SOL price.
In order to carry out this plan, the three crypto companies involved conducted a private investment in public equity (PIPE) transaction in partnership with the US publicly traded company Forward Industries (FORD). This capital increase, reserved for one or more investment funds, raised a total of $1.65 billion.
It was therefore time to move on to the final stage of this project, with the effective acquisition of 6.8 million SOL at an average price of $232 on September 15, for an estimated total cost of $1.58 billion.
“The world leader in Solana treasury companies”
In fact, crypto companies Galaxy Digital, Multicoin Capital, and Jump Crypto have announced their intention to provide strategic support to Forward Industries, in addition to the necessary capital. The operation is intended to make this company “the world leader in Solana treasury companies,” according to Multicoin Capital managing partner Kyle Samani.
Shareholders seem to have given the move a warm welcome, with FORD shares rising more than 35% over the last five days and 212% over the last month.
According to Forward Industries, the next step is to generate on-chain returns using staking positions and other decentralized finance (DeFi) options. The goal, as with any crypto treasury, is to create value for shareholders, potentially greater than simply holding SOL.
