Shares of Forward Industries, a firm managing a Solana treasury, plummeted by 25% on Tuesday, November 4, amid a broad flight from risky assets. The sell-off coincided with a 7.5% decline in Solana’s price to $154, reflecting wider negative sentiment across both crypto and equity markets.

Private Placement Shares Flood the Market

The steep drop in Forward Industries’ stock followed the company’s move to register shares from its September private placement. This action allows investors who participated in the deal to now sell their shares on the open market, creating significant downward pressure on the price.

The private placement originally raised $1.58 billion and enabled the company to acquire 6.822 million SOL at an average price of $232 per token. Major firms including Galaxy Digital, Jump Crypto, and Multicoin Capital were among the investors in that deal.

Company Responds with Share Repurchase Plan

In an effort to support its share price, Forward Industries announced that its board has authorized a new share repurchase program of up to $1 billion. The program, approved on November 3, allows the company to buy back its own stock until it expires on September 30, 2027, though it doesn’t obligate it to do so.

Board Chairman Kyle Samani stated that the authorization provides flexibility to return capital to shareholders when the board believes the stock is trading below its intrinsic value, all while the company continues to execute its Solana treasury and operational plans.

Crypto treasury firms like Forward Industries often use a mix of debt, staking, and yield-generating strategies to outperform the underlying assets they hold. However, this approach can effectively turn them into a leveraged investment, making their stock more volatile than the cryptocurrencies themselves.

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