Upexi Inc. (UPXI) Stock: Shares Surge 630% Following Announcement of Solana Treasury Strategy
TLDR
Upexi Inc. is raising $100 million primarily to accumulate Solana cryptocurrency
The company’s shares surged over 600% following the announcement
GSR, a crypto trading firm, is leading the investment along with several other firms
About $5.3 million will be used for working capital and debt reduction, with the remainder for Solana purchases
The move follows similar treasury strategies by other companies, including Janover Inc.’s recent $10.5 million Solana acquisition
Upexi Inc., a small consumer products company, has seen its stock price explode after announcing a major strategic pivot into cryptocurrency. The company revealed plans on Monday to raise $100 million, with the majority earmarked for accumulating Solana tokens and establishing crypto treasury operations.
The news sent Upexi shares skyrocketing. The stock jumped more than 630% on April 21, rising from $2.30 at the close on April 17 to $16.79. This dramatic increase transformed a company that had just a $3 million market capitalization last week.
Upexi has entered agreements with investors to purchase approximately 43.9 million shares of its common stock at a price of $2.28 per share in a private placement. The closing of this offering is expected on April 24.
Institutional Backing
The $100 million private investment is being led by GSR, a crypto trading and investment firm. Other participants include Maelstrom Capital, Delta Blockchain Fund, Delphi Ventures, Hivemind Ventures, Borderless Capital, and White Star Capital.
GSR’s involvement signals growing institutional interest in Solana. Brian Rudick, head of research at GSR, highlighted Solana’s attributes in a statement:
“Solana’s speed, scalability, and vibrant developer ecosystem make it an ideal foundation for long-term growth.”
Jakob Palmstierna, GSR President, described the investment as supporting the firm’s broader mission to back builders and protocols with capital, liquidity, and long-term guidance.
The Tampa-based Upexi plans to use approximately $5.3 million of the proceeds for working capital and debt reduction. The remainder will be allocated toward buying Solana tokens and establishing the company’s Solana treasury operations.
Following the Cryptocurrency Treasury Trend
Upexi’s move mirrors the business model pioneered by Strategy, which has amassed a Bitcoin stockpile worth about $45 billion since 2020. Strategy began investing in Bitcoin as a hedge against inflation, and several copycat companies have emerged worldwide since then.
However, while most corporate treasury strategies focus on Bitcoin, Upexi’s Solana-centric approach stands out as relatively unique.
Earlier this month, Janover Inc., a real estate financing firm now led by former Kraken executives, announced a similar strategy. Janover purchased $10.5 million worth of Solana tokens on April 15, and its stock price has increased by more than 1,000% since the Kraken team took control.
Lily Liu, Solana Foundation President, welcomed Upexi’s decision, calling it “a signal of how traditional finance and DeFi are starting to intersect.”
The Solana Appeal
Solana has emerged as one of the strongest performers in the latest crypto market cycle. Its popularity stems from low transaction costs, high throughput, and increasing developer activity.
The blockchain is particularly favored by creators of memecoins—speculative cryptocurrencies that can experience rapid value changes based on social media attention. Solana’s ecosystem now encompasses everything from these memecoins to decentralized infrastructure.
Despite reporting a 34.8% year-over-year decline in profits to $3 million in the fourth quarter of 2024, Upexi’s strategic pivot has reignited investor interest.
The company describes itself as “a brand owner specializing in the development, manufacturing and distribution of consumer products.” This dramatic shift into cryptocurrency represents a complete transformation of its business model.
The stock’s explosive rally demonstrates Wall Street’s growing appetite for business models that incorporate cryptocurrency. More companies may follow this trend as traditional finance continues to explore integration with digital assets.
The closing of Upexi’s $100 million offering is expected to occur on April 24, at which point the company will begin implementing its new Solana-focused treasury strategy.
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Filed under: News - @ April 22, 2025 8:29 am