Forward Industries nears $1B Solana paper loss after Q1 hit

Forward Industries, the self-described world’s largest Solana treasury company, reported a net loss of $585.6 million for the fiscal quarter ended Dec. 31, 2025. 

The loss was driven mainly by a $560.2 million loss on digital assets and a $33.0 million impairment linked to its SOL holdings.

The company still reported higher revenue. First-quarter revenue rose more than fourfold to $21.4 million from $4.6 million a year earlier, mainly due to staking revenue from its Solana treasury strategy.

Treasury sits below cost basis

Forward said it held 6,962,501 SOL on Dec. 31, 2025. It also said 6,834,505.96 SOL had been bought at a net cost of $232.08 per token, for a total cost of about $1.59 billion.

A later treasury update showed holdings had risen to 6,979,967.46 SOL by Jan. 15, 2026. With SOL recently trading near $91.24, the full position would be worth about $636.9 million, leaving a paper gap of about $983.1 million against the reported cost level.

Meanwhile, Forward said nearly all its SOL was staked. Its validator setup generated a 6.73% gross annual percentage yield before fees as of Jan. 15, while the company reported more than 112,171 SOL in staking rewards as of Dec. 31.

The staking income gives Forward recurring crypto revenue, but the price drop still shaped the quarter. Management said the accounting loss reflected the change in fair value of the company’s SOL holdings under U.S. GAAP.

Solana treasury model faces market test

Forward launched its Solana treasury strategy after a $1.65 billion PIPE backed by Galaxy Digital, Jump Crypto and Multicoin Capital. Earlier reports noted that the company moved quickly, buying 6.82 million SOL in its first week and staking the tokens.

The company has also tried to make its treasury more active. It launched fwdSOL, a liquid staking token, and began testing an automated market maker developed with Galaxy and infrastructure input from Jump Crypto.

Chairman Kyle Samani said the quarter marked the company’s first full reporting period as the largest Solana treasury firm. He said Forward was “actively executing” its strategy while building the base to compound SOL per share over time.

Forward also scheduled its fiscal second-quarter 2026 conference call for May 14. That makes the next update important for traders tracking staking rewards, SOL per share, liquidity and any shift in treasury use.