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Forward Industries, a digital asset-focused company that has built a significant position in Solana as part of its ongoing turnaround, has authorized a $1 billion share buyback program — a move aimed at returning value to shareholders as it moves forward with its transition into a digital asset treasury model.
The share buyback program, authorized Monday, allows Forward Industries to buy back its shares on an ongoing basis through open market purchases, trading blocks or privately negotiated transactions, the company said. announced.
Forward said the authorization provides flexibility amid market volatility, although share buybacks are typically aimed at returning value to shareholders by reducing the number of shares outstanding and minimizing dilution.
“The authorization gives us the flexibility to return capital to shareholders when we believe our stock trades below intrinsic value, all while continuing to execute our Solana treasury and operational initiatives,” the company said.
Forward Industries is currently the largest corporate holder of Solana (SOL), with more than 6.8 million SOL in its budget, according to the industry data. At current market prices, this stake is valued at approximately $1.1 billion.
As Cointelegraph recently reportedForward has also launched a validator node on the Solana network, further deepening its involvement in the blockchain ecosystem.
Forward shares fell nearly 20% on Tuesday broader weakness in actions related to the cryptocurrency sector.
Related: Citadel discloses a massive stake in the Solana treasury company
Cryptocurrency companies are facing increasing valuation pressure
Many companies pivoted to a “crypto-treasury” model during the bull market, with the goal of reviving their share prices and repositioning their businesses toward higher-growth digital asset sectors. However, these businesses have been under pressure recently.
Standard Chartered Analysts have warned that many crypto-treasury companies have experienced a valuation crisis, as their enterprise values have fallen relative to the market value of their underlying cryptocurrencies – effectively reducing their market net asset value (mNAV).
The pressure isn’t limited to altcoin-focused digital asset strategies. In June, Venture capital firm Breed warned that only a handful of Bitcoin (BTC) treasury companies are likely to avoid the “death spiral” triggered by collapsing NAVs.
Related: Mega Matrix files $2B shelf to build Athena stablecoin governance treasury
