Forward Industries Raises $1.65B to Kickstart $SOL Accumulation for the Market’s Biggest Solana DAT

The Solana VC trifecta has finally confirmed the rumor on the tip of everyone’s tongue. Backed by Galaxy Digital, Multicoin Capital, and Jump Crypto, Forward Industries has announced a $1.65B PIPE offering to launch what is expected to become the largest Solana DAT, or crypto treasury company.

As expected, Kyle Samani has been shoulder-tapped as Chairman of the Board, playing the role of Solana’s eagerly awaited Michael Saylor-esque TradFi champion.

What does Forward Industries’ $1.65B raise mean for the Solana DAT landscape, and what happens to $SOL from here?

Forward Industries Announces $1.65B PIPE Deal

On September 8, Forward Industries, a “sourcing and design company”, announced a $1.65B raise led by Multicoin Capital, Galaxy Digital, and Jump Crypto to initiate a Solana-based treasury strategy. The $1.65B raise is the single largest funding round ever witnessed in the Solana DAT landscape.

According to the press release, Forward Industries intends to leverage the experience of its sponsors to “generate differentiated onchain returns and build long-term shareholder value through active participation in the Solana ecosystem.”

While we can be certain that Forward Industries will focus primarily on $SOL accumulation and growth, the firm’s use of the term “differentiated” suggests that the NASDAQ-listed company may explore more creative treasury strategies than what we’ve come to expect in the crypto DAT game.

Forward Industries’ CEO Michael Pruitt reaffirmed the company’s belief in Solana’s long-term potential and expects the firm to become a key player in the DAT landscape.

“Solana has emerged as one of the most innovative and widely adopted blockchain ecosystems in the world. Our strategy to build an active Solana treasury program underscores our conviction in the long-term potential of SOL and our commitment to building shareholder value by directly participating in its growth… Working with Galaxy, Jump Crypto, and Multicoin – firms with deep expertise and proven track records of investing and building in the Solana ecosystem – gives us a strong foundation to execute this strategy and position the Company as a key player within the digital assets space.” - Michael Pruitt, Forward Industries CEO.

As theorized, Cantor Fitzgerald has been selected as the Lead Placement Agent, while C/M Capital Partners, LP, one of Forward Industries’ largest existing shareholders, has also been named as a participant in this transaction.

Kyle Samani Expected to Chair the Board

To no one’s great surprise, Multicoin Capital Managing Partner Kyle Samani is expected to become Forward Industries’ Chairman of the Board. Having witnessed the impact that respected TradFi figureheads like Michael Saylor and Tom Lee have had on crypto markets, the Solana faithful have been clamoring for their own frontman to preach $SOL’s bull case across traditional media.

Network participants across Solana are optimistic that Samani could be the best fit for the job. Throughout years of hardships and high waters, the Multicoin Managing Partner has been one of Solana’s strongest advocates and invested tremendously in the ecosystem.

“I have been one of the earliest and loudest champions of Solana since Multicoin first led the seed round back in 2018. Solana is still widely misunderstood and discounted by market participants, despite the fact that it has been resilient through adversarial cycles and continues to be one of the most performant general-purpose blockchains. I believe this asymmetry creates tremendous opportunity for a Solana treasury strategy… Real economic value is being generated on Solana. An institutional-scale treasury can be deployed in sophisticated ways within the Solana ecosystem to create differentiated value and increase SOL per share at a faster rate than simply being a passive holder. As expected Chairman, I look forward to stewarding the Company and helping shape the corporate strategy to take advantage of this significant opportunity.” - Kyle Samani, Multicoin Capital Managing Partner

Since the announcement, the Multicoin partner has demonstrated plenty of hunger for his new role as the TradFi face of Solana, expressing a willingness to represent the chain in a debate with $ETH DAT frontman Tom Lee.

Samani is expected to be joined on the Forward Industries Board by Galaxy CIO Chris Ferraro and Jump Crypto CIO Saurabh Sharma, both long-standing believers and supporters of Solana in their own right.

Galaxy CEO Mike Novogratz has celebrated the PIPE offering and anticipates that Forward Industries’ Solana DAT will greatly benefit from the leadership and experience its new board members will provide.

“Kyle, Chris, and Saurabh are three of the most established names within the broader digital asset ecosystem. We believe that under their guidance, Forward Industries will quickly separate itself as the leading publicly-traded company within the Solana ecosystem. We are proud to support this effort to further Solana’s adoption and reinforce its role in the future of finance.” - Mike Novogratz, Galaxy Digital CEO

Reinforcing the firm’s optimistic outlook for Solana’s future, Jump Crypto CIO Saurabh Sharma highlighted the network’s upcoming technical improvements, like Jump’s Firedance validator client, as bullish catalysts that will bring further value to shareholders as Solana continues to scale.

“Jump Crypto is excited to back Forward Industries as it takes a bold step forward with Solana at the center of its strategy. We believe the opportunity exists to provide investors with access to differentiated on-chain return sources that go far beyond traditional staking, leveraging Solana’s high-performance decentralized finance ecosystem. Jump Crypto has been a key engineering contributor to the Solana ecosystem through critical R&D projects like Firedancer, DoubleZero and others. We hope these efforts will be helpful to Forward Industries in achieving institutional scale and driving shareholder value.” - Saurabh Sharma, Jump Crypto CIO

What Happens Next for $SOL?

The prospect of an additional $1.65B in funds being allocated to purchase $SOL has instilled new confidence in the asset. Despite the pervading belief that Forward Industries will mainly acquire locked $SOL, instead of buying directly from the open market, social media commentators are optimistic that mounting buy pressure will enable the firm to raise additional capital for ongoing accumulation.

Galaxy Digital Head of DeFi Michael Marcantonio has since confirmed that the Forward Industries raise was executed entirely in cash and stablecoins. The deal does not include any locked or liquid $SOL, meaning that all $SOL is yet to be purchased.

According to Bloomberg, the proposed $1B raise was reportedly endorsed by the Solana Foundation, which later signed a non-binding Letter-of-Intent to sell locked $SOL to rival Solana-based DAT Sharps Technology at a slightly discounted price. 

At first glance, it appears that the Foundation has withdrawn its endorsement of the deal. SolanaFloor engaged the Solana Foundation for comment on the matter, but has yet to receive a response.

While market participants celebrate the mouth-watering $1.65B raise, it would appear that Solana September has yet to hit full speed. Crypto thought-leaders have hinted that rival Solana treasury companies are expected to announce further $1B raises, with several expected to purchase $SOL at directly at market value.

According to Solana Strategic Reserve data, Sharps Technology currently boasts the largest treasury, holding 2.14M $SOL worth over $458M. Depending on the aggressiveness of its accumulation strategy, Forward Industries could well find itself at the top of this list in the near future.

As if billions in publicly telegraphed buy pressure weren’t enough, Solana’s market outlook also benefits from further tailwinds. The SEC is rapidly approaching its final deadline regarding a decision on $SOL ETFs, which are widely expected to be approved 

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