Forward Industries, Solana’s dedication after submitting a $ 4 billion on the Markt (ATM) shares supply program at the US Securities and Exchange Commission on 17 September.
The company said The proceeds from the program will finance general business needs, including working capital, strategic acquisitions and expansion of its Solana Treasury Holdings.
According to Google Finance factsShares of Forward Industries fell 7% to $ 34 in early trade after the announcement.
Despite the market reaction, business leaders have drawn up the move as a strategic way to unlock capital and at the same time strengthen the balance.
Kyle Samani, chairman of the business administration, said:
“Because of this offer, Forward Industries gets a flexible and efficient mechanism to attract capital and to use methodically to support our Solana Treasury strategy.”
He added that the program encounters the earlier efforts of the company, including the completion of the largest treasury Raise-aimed at Solana so far and the purchase of more than 6.8 million Sol tokens.
Forward Industries in particular has taken over these coins by a $ 1.65 billion deal led by Galaxy Digital, Jump Crypto and Multicoin Capital.
Solana Treasuries get site
The aggressive accumulation of Forward is in line with a broader trend in companies that integrate Solana into their treasury strategies.
Facts From the strategic Solana Reserve Tracker it shows that the ownership of the token has recently risen to 17.17 million SOL, worth more than $ 4 billion. These companies represent almost 3% of the circulating range of Solana.
X afterMichael Marcantonio, head of Defi of Galaxy, argued that different companies turn to Solana Treasuries because they can surpass their bitcoin and ethereum opposite because of various structural benefits.
According to him, the higher volatility of Solana creates opportunities for financial engineering through bonds and warrants, which can accelerate the accumulation of the token for treasury companies. Secondly, the expansion yield, currently around 7-8% compared to the 3-4% of Ethereum, offers a composite effect that steadily increases the net assets over time.
Marcantonio also pointed to the relative undervaluation of Solana, and noted that despite its smaller market capitalization, the blockchain network processes more transactions and supports more users than Ethereum.
Given this, he suspected that:
“If Solana Treasury companies can perform well, they can offer asymmetrical top (because NAV/Share can both aggravate the Treasury mechanics and the market reprication of SOL in relation to ETH).”