Forward Industries, a company with substantial holdings in Solana, has greenlit a $1 billion share repurchase program. This strategic decision comes in response to a notable dip in its share price observed on Tuesday morning.
The authorized program enables Forward Industries to buy back its shares through various methods, including open-market transactions and private negotiations, as stated in an official announcement.
The company’s representative indicated that this authorization allows them to react flexibly amid fluctuating market conditions. Typically, share repurchase programs aim to enhance shareholder value by decreasing the number of shares available and reducing dilution.
“The authorization gives us 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 highlighted.
Currently, Forward Industries is recognized as the largest corporate holder of Solana, boasting over 6.8 million SOL in its portfolio valued approximately at $1.1 billion based on prevailing market rates.
As reported by Cointelegraph, Forward has also established a validator node on the Solana network, deepening its commitment to the blockchain space.
On Tuesday, Forward’s stock experienced a decline of nearly 20% alongside broader market weaknesses impacting the cryptocurrency sector.
Crypto Treasury Companies Under Evaluation Pressure
During the recent bull market, various companies shifted towards a crypto treasury model in hopes of revitalizing their stock prices and redirecting their businesses toward the burgeoning digital asset sector. Recently, however, many of these companies have been facing significant valuation challenges.
Analysts at Standard Chartered have noted that numerous crypto treasury companies are undergoing a valuation pressure due to their enterprise values dropping compared to the market value of their crypto assets, thereby diminishing their market net asset value (mNAV).
This trend is not limited to firms focusing on altcoins. Earlier, venture capital firms expressed concerns that a limited number of Bitcoin treasury companies might survive a “death spiral” caused by collapsing NETs.
