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Largest Corporate Holder of Solana Reports Half-Billion-Dollar Losses
Forward Industries, which describes itself as the world’s largest corporate holder of Solana, reported a net loss of $585.6 million in its first-quarter earnings report.
At present, the company’s unrealized losses have nearly reached $1 billion.
At the beginning of the year, Forward Industries held approximately 6.98 million SOL tokens. The assets were acquired at an average price of $232.08 per token. However, with SOL currently trading around $91.24, the total value of the company’s position has fallen to approximately $636.9 million.
As a result, the gap between the purchase cost and the current market value of the reserves has widened to roughly $983.1 million.
Despite this, the company’s quarterly revenue increased more than fourfold to $21.4 million. The primary growth driver was staking income generated from SOL, with nearly all of the company’s holdings allocated to staking activities.
According to the financial report, staking currently generates approximately 6.73% annual yield before fees.
Company Dramatically Shifted Its Business Strategy Toward Solana
Last year, Forward Industries fundamentally transformed its business model and began aggressively accumulating SOL, joining dozens of companies inspired by the strategy of Strategy, the largest corporate Bitcoin holder.
To finance the transformation, the company raised $1.65 billion with support from major industry players including Galaxy Digital, Jump Crypto, and Multicoin Capital.
Within the first week after the financing round, the company acquired 6.82 million SOL.
Forward Industries also planned to raise an additional $4 billion for further cryptocurrency purchases, although those plans were ultimately never realized.
Initially, the company’s aggressive Solana strategy produced strong results: shares of FWDI surged roughly eightfold. However, the stock later collapsed nearly 90% from its peak levels.
Even Strategy Reported Massive Losses
The world’s largest publicly traded corporate holder of Bitcoin, Strategy, also reported losses totaling $12.5 billion for the first quarter.
As a result, the company even acknowledged the possibility of selling part of its Bitcoin reserves.
See also: "Banks Issue Alarmed Statements After Major Progress on the CLARITY Act Crypto Bill"
