Solana's financial company's stock price big dump 7%! Investors panic dumping after announcing a $4 billion buyback plan.

Forward Industries submitted a $4 billion market (ATM) stock issuance plan to the SEC, promising to further expand its Solana national bond holdings, but the stock price fell 7% after the announcement, raising concerns in the market about this aggressive financial strategy. Nevertheless, the total amount of Solana tokens held by the company has climbed to 17.17 million, valued at over $4 billion, accounting for nearly 3% of the circulating supply of Solana, indicating continued institutional interest in SOL.

Forward Industries stock falls, but坚持 Solana financial strategy

(Source: Google)

Forward Industries submitted a $4 billion at-the-market (ATM) stock issuance plan to the SEC on September 17, further deepening their commitment to Solana. The company stated that the funds will be used to meet general corporate needs, including working capital, strategic acquisitions, and expanding its Solana bond holdings.

According to Google Finance data, after the news was announced, Forward Industries' stock price fell by 10.28% to $33.51 on September 17, indicating that investors are cautious about this large-scale financing plan.

Despite the negative market reaction, the company's executives view this move as a strategic way to release capital and strengthen the balance sheet. Kyle Samani, the chairman of the company's board, stated: "Through this issuance, Forward Industries has acquired a flexible and efficient mechanism to raise and systematically deploy funds to support our Solana financial strategy."

He added that the plan is based on the company's early efforts, which include completing the largest financial financing focused on Solana to date and purchasing over 6.8 million SOL tokens. Notably, Forward Industries acquired these tokens through a $1.65 billion transaction led by Galaxy Digital, Jump Crypto, and Multicoin Capital.

Solana Treasury Holdings Surge: A New Trend for Enterprises

The positive accumulation by Forward is consistent with the broader trend of the company incorporating Solana into its financial strategy. Data from the Solana strategic reserve tracker shows that the Solana tokens held by enterprises have recently climbed to 17.17 million, valued at over $4 billion. These holdings account for nearly 3% of Solana's circulating supply, indicating a sustained increase in institutional interest in SOL.

In a post on the X platform, Galaxy's DeFi head Michael Marcantonio analyzed the reasons why enterprises are turning to Solana bonds, believing that they can outperform their Bitcoin and Ethereum peers with multiple structural advantages:

· Financial engineering opportunities: The higher volatility of Solana creates opportunities for financial engineering through bonds and warrants, which may accelerate the token accumulation of asset management companies.

· Higher staking returns: The staking yield of Solana is currently around 7-8%, while Ethereum is only 3-4%. This has a compound interest effect, which can steadily increase net asset value over time.

· Relatively undervalued valuation: Despite its smaller market capitalization, the Solana blockchain network processes more transactions than Ethereum and supports more users.

Considering these factors, Marcantonio speculated: "If Solana financial companies perform well, they can provide asymmetric upside potential (as each share's net asset value can be compounded through financial mechanisms and the market repricing of SOL relative to ETH)."

Market Reaction and Future Outlook

The fall in Forward Industries' stock price reflects investors' concerns about this aggressive financial strategy. A large-scale stock issuance may lead to the dilution of existing shareholders' equity, while investing a significant amount of funds into highly volatile crypto assets also brings additional risks.

However, in the long term, if the Solana network continues to expand its market share and increase its valuation relative to Ethereum, this strategy could bring significant returns to the company. Especially considering Solana's staking yield and transaction processing capacity, these factors may support its long-term value rise.

For the cryptocurrency market, the increase in Solana tokens held by enterprises may reduce market circulation, thereby supporting the SOL price on the supply and demand level. At the same time, the participation of institutional investors also brings more legitimacy and stability to the Solana ecosystem.

As more companies incorporate crypto assets into their financial strategies, the market will closely monitor the performance of pioneers such as Forward Industries to assess the viability and long-term impact of this emerging trend.