Upexi Increases Solana Treasury to 201,500 Solana Tokens for $30 Million and Begins to Generate Staking Revenue

Rhea-AI Summary

Upexi Inc. (NASDAQ:UPXI) has expanded its Solana (SOL) holdings to 201,500 tokens, investing $30 million at an average price of $148.47 per SOL. This investment follows the company's recent $100 million private placement from cryptocurrency venture capital firms and key opinion leaders on April 24, 2025. The company retains over $60 million in cash for additional SOL investments.

Through staking its SOL tokens, Upexi expects to generate approximately $2.4 million in annual staking revenue at current prices and yields. This revenue is projected to increase to $7.0 million once additional funds are invested and staked. The company aims to continue accumulating SOL and strengthen its position as the leading Solana treasury company.

Positive

• Significant SOL position of 201,500 tokens worth $30 million
• Strong cash position of $60 million available for further SOL investments
• Expected annual staking revenue of $2.4 million, potentially increasing to $7.0 million
• Successfully raised $100 million through private placement from crypto VCs

Negative

• High concentration risk in a single cryptocurrency (Solana)
• Exposure to crypto market volatility and potential price fluctuations
• Staking revenue dependent on SOL price and staking yield variations

Insights

Cryptocurrency Expert

Upexi's $30M Solana investment creates an 8% passive revenue stream through staking, transforming a consumer products company into a Solana treasury vehicle.

Upexi's acquisition of 201,500 SOL tokens for $30 million ($148.47 per token) represents a major strategic move into the Solana ecosystem. The company has immediately implemented staking - committing their tokens to support network operations while generating passive income. Based on current holdings, this staking strategy projects to deliver $2.4 million in annual revenue, potentially increasing to $7.0 million once their remaining $60+ million is deployed.

This 8% staking yield creates significant recurring revenue while Upexi maintains ownership of the underlying assets. The company's decision to stake all tokens aligns with efficient treasury management, generating yield from otherwise idle assets. CEO Marshall's statement about wanting to "acquire and HODL" (crypto terminology for holding long-term) signals their intention to accumulate and retain these assets rather than trade them.

By positioning as the "canonical Solana treasury company," Upexi is effectively creating a publicly-traded vehicle with substantial exposure to the Solana ecosystem. This offers investors a unique opportunity to gain indirect Solana exposure through a NASDAQ-listed entity, potentially serving as an alternative investment vehicle compared to directly purchasing SOL tokens. With $60 million still available for additional purchases and plans for future capital raises, Upexi appears committed to significantly expanding this strategy.

Financial Analyst

Upexi diversifies with $30M Solana investment generating 8% yield through staking, creating material new revenue stream while maintaining consumer products focus.

This announcement reveals a significant strategic diversification for Upexi, which has historically focused on consumer products manufacturing and distribution. The $30 million Solana investment represents a substantial portion of their recently raised $100 million private placement capital, with $60+ million still available for additional cryptocurrency investments.

The financial impact is immediately material - projecting $2.4 million in annual staking revenue from current holdings, with potential to reach $7.0 million once fully deployed. This 8% yield creates a passive income stream that could significantly enhance Upexi's financial profile without requiring operational expansion.

This strategy transforms Upexi's balance sheet composition and risk profile. While generating predictable staking income, the underlying asset valuation remains subject to cryptocurrency market volatility, creating both opportunity and risk. The indication of "planned future accretive raises" suggests additional capital formation specifically targeted toward expanding Solana holdings, potentially affecting capital structure.

What's particularly notable is that Upexi describes itself as maintaining its core identity in consumer products "with diversification into the cryptocurrency space" rather than a complete pivot. This creates a hybrid investment opportunity combining established operations with this new cryptocurrency treasury strategy. The resulting business model offers exposure to both traditional consumer markets and passive cryptocurrency revenue - a unique combination among NASDAQ-listed companies.

Company has over $60 million in cash remaining to invest further in SOL

At current price of SOL and staking yield, Upexi expects to receive approximately $2.4 million in annual staking revenue and $7.0 million once all funds are invested and staked

TAMPA, FL / ACCESS Newswire / May 6, 2025 / Upexi Inc. (NASDAQ:UPXI), a brand owner specializing in the development, manufacturing and distribution of consumer products with diversification into the cryptocurrency space, has increased its treasury of Solana to approximately 201,500 Solana (SOL) tokens for $30 million, or $148.47 per SOL.

Upexi closed on a $100 million private placement from leading cryptocurrency venture capital firms and key opinion leaders on April 24, 2025. Subsequent to its $30 million of SOL purchases, Upexi has over $60 million in cash remaining to invest further into Solana in the near-term.

The Company is currently staking all SOL, and expects to receive approximately $2.4 million in annual staking revenue at the current price of SOL and staking yield, which is expected will increase to approximately $7.0 million once the additional funds are invested in SOL and staked. Staking provides holders of proof-of-stake-based cryptocurrencies a way to earn yield while also helping to secure the network.

Allan Marshall, CEO of Upexi, commented, "In just a little over a week since the closing of the Company's $100 million private offering, Upexi now has material exposure to Solana and we are just getting started. Our goal is to acquire and HODL as many SOL as possible. With over $60 million of cash available for near-term SOL purchases and planned future accretive raises, Upexi is well positioned to accelerate the accumulation of SOL and further its lead as the canonical Solana treasury company."

About Upexi, Inc.

Upexi is a brand owner specializing in the development, manufacturing and distribution of consumer products. The Company has entered the Cryptocurrency industry and cash management of assets through a Cryptocurrency Portfolio. For more information on Upexi's treasury strategy and future developments, visit www.upexi.com.

Follow CEO, Allan Marshall, on X - https://x.com/marshall_a22015

Forward Looking Statements

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. For example, the Company is using forward looking statements when it discusses the anticipated use of proceeds. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with business strategy, potential acquisitions, revenue guidance, product development, integration, and synergies of acquiring companies and personnel. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward- looking statements. Although we believe that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Company Contact

Andrew Norstrud, Chief Financial Officer
Email: andrew.norstrud@upexi.com
Phone: (702) 332-5591

Investor Relations Contact

KCSA Strategic Communications
Valter Pinto, Managing Director
Email: Upexi@KCSA.com
Phone: (212) 896-1254

SOURCE: Upexi

View the original press release on ACCESS Newswire

FAQ

How many Solana tokens does Upexi (UPXI) currently hold in its treasury?

Upexi currently holds 201,500 Solana (SOL) tokens in its treasury, purchased for $30 million at an average price of $148.47 per SOL.

What is the expected annual staking revenue for Upexi (UPXI) from its Solana holdings?

Upexi expects to generate approximately $2.4 million in annual staking revenue at current prices and yields, with potential to increase to $7.0 million once additional funds are invested and staked.

How much did Upexi (UPXI) raise in its private placement and how much cash remains?

Upexi raised $100 million in a private placement on April 24, 2025, and has over $60 million in cash remaining for further Solana investments.

What is Upexi's (UPXI) strategy for its Solana investments?

Upexi's strategy is to acquire and HODL as many SOL as possible, positioning itself as the canonical Solana treasury company through continued accumulation of SOL tokens.