Forward Industries, a publicly-traded firm on the Nasdaq, recently announced its plan to launch an at-the-market (ATM) equity offering worth up to $4 billion. This strategic initiative aims to provide the company with the flexibility to gradually sell shares to finance its substantial investments in Solana (SOL), a leading blockchain platform.
The announcement was made on Wednesday, detailing that shares will be issued through sales agent Cantor Fitzgerald. This offering falls under an automatic shelf registration statement that has been filed with the US Securities and Exchange Commission (SEC), providing a streamlined mechanism for large, publicly-traded companies to raise capital as needed.
While the maximum potential raised in this offering stands at $4 billion, Forward Industries clarified that actual sales will depend on market conditions. The proceeds from the share sales are earmarked for various corporate purposes, including bolstering working capital, supporting growth initiatives, and specifically expanding the company’s treasury holdings of Solana.
Kyle Samani, the chairman of Forward Industries’ board, emphasized that this offering allows the company a flexible approach to capital management, which is crucial for their Solana treasury strategy. He remarked, “The ATM Program enhances our ability to continue scaling that position, strengthen our balance sheet, and pursue growth initiatives in alignment with our long-term vision.”
This new initiative follows the earlier announcement on September 8, when Forward Industries revealed its ambitions for a Solana treasury strategy. The company secured a staggering $1.65 billion in cash and stablecoin commitments from prominent names in the crypto sector, including Galaxy Digital, Jump Crypto, and Multicoin Capital, aimed at building its Treasury of SOL tokens.
Shortly after the announcement, Forward Industries undertook a noteworthy shopping spree in the digital currency space, with Galaxy Digital reportedly acquiring $306 million worth of Solana tokens in a single day to bolster the company’s treasury position. Current data from treasury tracker Solana Strategic Reserve indicates that Forward Industries leads in the accumulation of SOL, holding approximately $1.6 billion in tokens.
Notably, Forward Industries is not navigating this space alone. The interest in developing a strategic treasury centered on Solana has escalated among institutional investors. As of Tuesday, the Solana Strategic Reserve reported that the total SOL treasuries across various companies surpassed 17.11 million tokens, valued at over $4 billion. This uptick signals a surging institutional interest in the Solana ecosystem.
In total, there are 17 companies that have initiated Solana reserve strategies, including noteworthy organizations such as Sharps Technology, the DeFi Development Corp., and Upexi, all of which contribute to the growing prominence of SOL in institutional portfolios.
This concerted effort among different companies underscores a collective belief in the potential of Solana to thrive in the evolving landscape of digital assets. As Forward Industries takes significant steps to expand its treasury, it highlights an emerging trend that could define the future interactions of institutional investors with cryptocurrencies like SOL.
