Solana Crash Wipes Out $668M For Forward Industries. Is This Just the Beginning?

The crypto market is bleeding again. Forward Industries, the biggest institutional holder of Solana, is staring at unrealized losses of $668 million after the recent Solana crash sent shockwaves through the market. With nearly 80% of SOL’s circulating supply now underwater, this isn’t just another minor correction. It’s a warning sign that even the biggest players can’t escape when markets turn south.

The Damage from the Solana Crash

Forward Industries (NASDAQ: FWDI) owns 6.9 million SOL tokens. That’s more than 1.1% of Solana’s entire circulating supply. According to CoinGecko data, their treasury was worth $917 million at recent prices. The problem? They paid $1.59 billion for it. Their average purchase price sits at $230 per SOL token.

Do the math, and you get a paper loss of $668.73 million. That’s a 42.2% decline in value.

The company jumped into Solana in September 2025, buying 6.8 million SOL at roughly $232 each. A BusinessWire release confirmed the initial $1.58 billion investment. Since then, they’ve added small amounts, with November 2025 disclosures showing 6.91 million SOL in their treasury.

Their stock price followed the same path down. From a high of $40, FWDI shares crashed to $8.17. Billions in shareholder value vanished. Today, Forward Industries’ entire market cap is $706 million, which is actually less than what their SOL holdings are worth. Let that sink in.

Why the Solana Crash Hit So Hard

This isn’t just Forward Industries’ problem. Glassnode data reveals that about 79.6% of Solana’s circulating supply is now held at a loss at $126.9 per token. That’s roughly 478.5 million SOL tokens underwater.

The timing explains everything. Many investors and institutions bought in during late 2024 and early 2025 when sentiment was high. Solana hit its all-time high of $263.2 in November 2024, according to Oak Research. That month alone saw a 41.4% gain. People thought the bull run would never end.

Then reality hit. SOL has dropped more than 50% from its peak. The Solana crash wiped out months of gains in weeks.

The irony? Solana’s fundamentals looked strong throughout this period. In November 2024, Solana actually overtook Ethereum in monthly fee revenue for the first time. Fees jumped 171% to about $200.69 million. Total value locked surged 73% to $11.4 billion, making Solana the world’s second-largest blockchain by TVL.

None of that mattered when the market decided to sell.

What Forward Industries Is Doing Now

Recent blockchain activity sparked speculation about Forward Industries’ next move. The company transferred 1.727 million SOL worth around $219 million to a wallet address labeled 552ptg. Panic spread quickly. Was this a capitulation? Were they dumping their holdings?

Not quite. Those funds returned to the company’s staking account shortly after. Market watchers now view it as simple portfolio restructuring, not a panic sell.

Forward Industries continues staking their SOL to generate yield. They added 38,968 SOL last month but haven’t made any dramatic changes to their treasury strategy. Chairman Kyle Samani and the team remain committed despite the brutal losses.

How Other Crypto Companies Are Faring

The Solana crash exposed the risks of concentrated crypto bets. Compare Forward Industries to other digital asset treasury companies, and you see wild differences.

Strategy holds 649,870 BTC bought at an average of $74,433. Their unrealized profit? $6.15 billion, up 12.72%. Meanwhile, Bitmine owns 3.56 million ETH purchased at roughly $4,010 each. They’re sitting on an unrealized loss of $4.52 billion, down 31.67%.

Bitcoin holders are celebrating while Solana and Ethereum investors are licking their wounds. This divergence highlights the volatility these companies face when they bet big on specific assets.

Galaxy research shows Digital Asset Treasury companies collectively hold over $100 billion in crypto assets. Bitcoin-focused firms control $93 billion, while ETH-focused companies hold over $4 billion. These positions can amplify market volatility due to their size and sometimes leveraged exposures.

What Comes Next After the Solana Crash?

Open interest in Solana futures has stabilized around 8 million contracts after recent volatility. That suggests a consolidation phase. When open interest stays steady while prices fall, it often signals lower conviction and possible liquidations.

Traders are cautious. They’re waiting for catalysts that might trigger a rebound. But nobody knows when that will happen or if it will happen at all.

Forward Industries’ future depends entirely on Solana’s ability to recover. Can SOL establish new support levels and climb back? Or will further downside pressure force the company to reconsider its strategy?

The Solana crash serves as a reminder that even institutional investors with deep pockets aren’t immune to crypto’s wild swings. Forward Industries believed in Solana enough to invest $1.59 billion. Now they’re down $668 million and hoping for a turnaround.

For retail investors watching this unfold, the lesson is clear. Crypto markets can turn brutal fast. Even when fundamentals look solid and institutional money pours in, crashes happen. Risk management matters more than conviction when navigating volatile crypto markets, learn the essential strategies to protect your portfolio.

Is this just the beginning of deeper losses? Only time will tell. But right now, Forward Industries and nearly 80% of Solana holders are underwater and hoping the storm passes soon.

How much did Forward Industries lose in the Solana crash? 

Forward Industries has unrealized losses of $668 million on its Solana holdings. They purchased 6.9 million SOL at an average price of $230, but the token has dropped significantly since.

What percentage of Solana holders are currently underwater? 

About 79.6% of Solana’s circulating supply is held at a loss according to Glassnode data. That’s roughly 478.5 million SOL tokens purchased at higher prices than current market levels.

Is Forward Industries selling its Solana holdings? 

No. Recent wallet transfers were portfolio restructuring, not selloffs. The company continues staking their SOL and remains committed to their treasury strategy despite significant losses.

When did Solana reach its all-time high? 

Solana hit its all-time high of $263.2 in November 2024. The token has since dropped more than 50% from that peak during the recent market downturn.

At the time of writing the article, Solana (SOL) is trading at $131.34 after a loss of 0.99% in the past 24 hours.

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Disclaimer:

This article is for informational purposes only and should not be taken as financial advice. Cryptocurrency markets are volatile and readers should conduct their own research before making investment decisions.