Forward Industries and Galaxy Digital Partner on $1.65B Solana Treasury Deal

Forward Industries partners with Galaxy Digital to launch a $1.65B Solana treasury, marking a major shift in institutional crypto adoption.

Forward Industries is making a bold move into crypto by partnering with Galaxy Digital to create a $1.65 billion Solana (SOL) treasury. The strategy represents a significant shift in the way that public companies treat digital assets. Galaxy Digital has already bought $326 million worth of SOL tokens with another $1.3 billion earmarked in future investments, including $354 million in stablecoins.

Forward Industries Aims to Be Largest Public Holder of SOL

This development marks a growing trend of institutional interest in Solana, a blockchain network that is known for its speed, low fees, and scalability. Many investors now consider Solana to be a serious competitor to Ethereum in the decentralized finance (DeFi) and Web3 sectors. Forward Industries plans to be the largest publicly listed holder of SOL (inspired by MicroStrategy’s successful strategy for Bitcoin).

The investment is being led by Galaxy Digital, Jump Crypto and Multicoin Capital, who together have poured in more than $300 million. Other prominent backers include Bitwise Asset Management, Borderless Capital and SkyBridge Capital. Several angel investors and crypto founders joined in as well, giving the deal a good response from traditional finance and the blockchain industry.

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In order to strengthen its new direction, Kyle Samani, co-founder of Multicoin Capital, has been named the chairman of the board at Forward Industries. Additionally, there will be Chris Ferraro of Galaxy Digital and Saurabh Sharma of Jump Crypto as board observers. These appointments will provide advice and ensure that the company’s crypto strategy is in line with industry standards.

The announcement has already had some impact on the market. Forward Industries’ stock surged as much as 15% in pre-market trading, though there were some losses. Still, this price movement is a reflection of the enthusiasm from investors about the company’s pivot to blockchain-based assets. Many find this a wise move in a time of rising digital asset adoption.

Forward Industries Embraces Solana as Treasury Strategy Evolves

The crypto market in general has been gaining momentum. Earlier this month, Hong Kong’s HashKey Group announced a $500 million digital asset treasury fund, providing further evidence that large capital allocations to crypto are becoming more common. The Solana move from Forward Industries fits well within this larger trend.

Solana’s expanding ecosystem makes a huge part of this decision. The blockchain is used for a large number of DeFi, NFT and Web3 projects. And its growing adoption and better network performance has made it appealing to institutional investors seeking alternatives to Bitcoin and Ethereum. This makes Solana a natural choice as a treasury holding strategy.

Regulatory shifts are also providing more companies to consider crypto. In places such as Hong Kong and the U.S., new and more well-defined rules provide traditional firms with the confidence to move into the space. Forward Industries is taking advantage of this opportunity by being an early leader in Solana-focused treasury management.

This move may influence what other public companies are doing in terms of digital assets. By holding crypto on their balance sheets, firms are able to diversify, hedge and potentially unlock new value. Forward Industries’ Solana treasury is part of an important milestone in the burgeoning relationship between traditional finance and blockchain innovation.