Forward Industries raised $1.65bn in a private placement led by Galaxy Digital, Jump Crypto and Multicoin Capital. The proceeds will fund the creation of a Solana reserve, according to a press release.
The partners will provide the firm with capital and strategic support to build a cryptocurrency treasury.
“Solana has become one of the most innovative and widely adopted blockchain ecosystems in the world. Our strategy to build an active treasury programme underscores confidence in SOL’s long-term potential and a commitment to growing shareholder value through direct participation in its development,” said Forward Industries CEO Michael Pruitt.
Multicoin Capital co-founder and managing partner Kyle Samani will become chairman of the board. Galaxy Digital president and chief investment officer Chris Gerraro and Jump Crypto CIO Saurabh Sharma will join the board as observers.
Cantor Fitzgerald will act as placement agent, while Galaxy Investment Banking—a division of Galaxy Digital—will serve as financial adviser.
Who else is accumulating SOL?
The largest Solana holder among corporate treasuries is Upexi. The company approved a strategy to create a reserve in the cryptocurrency in April. At the time of writing, it holds 2m SOL worth $431m.
The top three also include DeFi Development Corp. and Sol Strategies, with 1.9m SOL ($428m) and 370,420 SOL ($62m), respectively.
According to MEXC Research analyst Shawn Yang, the SOL price could rise to $250 by year-end on institutional demand.
Corporate reserves in BTC and ETH
Corporates focus chiefly on accumulating the two largest cryptocurrencies by market value—bitcoin and Ethereum.
Public companies have amassed more than 4% of the total supply of the digital gold—958,241 BTC worth $107bn. The largest holders are Strategy and Marathon Digital, with 636,505 BTC and 50,639 BTC, respectively.
On September 8 it emerged that last week Michael Saylor’s firm bought 1,955 BTC for $217.4m. The average purchase price was $111,196 per coin.
At the same time, BitMine Immersion—the largest holder of the second-biggest cryptocurrency—bought more than 200,000 ETH. Its balance now exceeds 2m coins, valued at $7.2bn at current prices. The firm has accumulated 1.7% of Ethereum’s supply.
At the time of writing, bitcoin trades at $112,250 and Ethereum at $4,342, according to CoinGecko.
Tough times ahead
Analysts at NYDIG forecast a difficult period for corporate bitcoin treasuries. The reason is a narrowing gap between share prices and NAV even as the cryptocurrency sets new record highs.
Greg Sipolaro, the firm’s head of global research, noted that premiums at companies such as Metaplanet and Strategy are shrinking amid investor concerns about upcoming share unlocks, shifting corporate strategies, increased share issuance and profit-taking.
He warned that companies with bitcoin reserves face a “bumpy road” ahead: many are on the verge of mergers or financing deals to list, which could spark another wave of selling.
Sipolaro sees share buyback programmes as a way to support prices. Otherwise, conditions could deteriorate.
According to CryptoQuant, the combined bitcoin reserves accumulated by companies reached a record 840,000 BTC in August. However, purchase sizes and transactions fell to yearly lows.
Corporate crypto treasuries have split the community. Proponents argue that such structures “raise the ecosystem’s visibility” and create long-term value. Critics point to the risk of conflicts of interest.