Solana News Today: Forward's Market Cap Now Trails Value of Its Solana Holdings Amid Deteriorating Conditions

Solana's sharp price decline has left institutional investor Forward Industries reeling with a $668 million unrealized loss on its massive Solana (SOL) holdings, as nearly 80% of the cryptocurrency's circulating supply now trades at a discount. The firm, which controls over 1.1% of SOL's total supply, recently moved 1.727 million tokens to a custody wallet, a move analysts say reflects portfolio restructuring. The shift underscores growing pressure on institutional crypto strategies as market conditions deteriorate according to market analysis.

Forward Industries, which acquired 6.91 million SOL at an average price of $232.08, now holds the tokens at a market value of $917.42 million-down from a $1.59 billion acquisition cost. The company's stock has mirrored its crypto losses, plummeting from a $40 peak to $8.17 as of November 2025. Meanwhile, SOL's price has languished near $127, confined within a descending channel that has seen repeated rejections at higher levels. Technical indicators show consolidation around this price after a recent drop from $145–$150, with volatility persisting despite reduced trading volumes.

Derivatives markets highlight cautious sentiment. Coinglass data reveals a 44.77% decline in total derivatives volume to $11.42 billion, while open interest rose 5.91% to $6.99 billion. Short liquidations dominated 24-hour activity, with $3.6 million in shorts versus $1.44 million in longs. Long-to-short ratios across exchanges remain slightly bullish, with Binance and OKX reporting ratios of 4.168 and 3.43, respectively.

Forward's treasury strategy, launched in September 2025, has seen mixed results. While staking yields generated a 6.82% gross APY, tax-loss harvesting efforts offset some losses. The company recently expanded its Solana holdings by depositing 1.443 million tokens into Coinbase Prime, though the move's intent-whether a sell-off or strategic reallocation-remains unclear.

The broader market structure reflects widespread pain. Glassnode data shows 79.6% of SOL's circulating supply - approximately 478.5 million tokens - is now held at a loss. This trend has pushed Forward's market cap below the value of its crypto assets, as the firm's $706.38 million valuation trails its $917.42 million in SOL holdings.