Upexi Details Solana Treasury Strategy, Staking Income and Locked Token Purchases

Key Points

• Upexi is shifting toward a Solana-focused digital-asset treasury and held approximately 2.3 million SOL after raising $300 million through equity and convertible-note transactions.
• The company stakes its SOL for an estimated 5%–6% yield and purchases locked tokens at roughly 14%–15% discounts; about 36% of its holdings are locked and scheduled to unlock monthly through January 2028.
• Upexi has reduced its workforce, lowered debt and cut borrowing costs, while acknowledging that its results remain heavily dependent on Solana’s price and adoption amid significant cryptocurrency volatility.

Upexi NASDAQ: UPXI Chief Strategy Officer Brian Rudick outlined the company’s strategy as a Solana-focused digital asset treasury, emphasizing staking income, discounted purchases of locked tokens and capital-markets activity intended to increase Solana held per share.

Speaking at a company presentation, Rudick said Upexi began transitioning into a digital-assets business in February of the prior year. The company still owns a consumer pet-supplies brand that sells directly to consumers and through third-party platforms including Amazon, but Rudick said that operation produces roughly $5 million in annual recurring revenue, is approximately break-even and represents a small part of the company’s broader story.

Solana Treasury Strategy

Rudick described Upexi as a company seeking to raise capital “in an accretive fashion” to acquire Solana. The company completed a $100 million equity raise in April, which Rudick characterized as the first large-scale U.S. equity raise for an altcoin treasury company. It later completed a $200 million raise in July, including an in-kind convertible note issuance that accepted Solana as consideration.

Upexi subsequently disclosed that it held roughly 2.4 million Solana tokens early in the year, Rudick said. During the presentation, he cited the company’s current treasury at approximately 2.3 million SOL.

The company’s approach is modeled in part on the digital-asset treasury strategy popularized by MicroStrategy, according to Rudick. That model seeks to use a premium between a company’s market capitalization and the value of its cryptocurrency holdings to issue new securities and increase cryptocurrency holdings per share.

Rudick said Upexi aims to follow that model with what he described as a moderate use of leverage and a focus on qualified custodians, diversification among third-party providers and risk management. He said the company does not pursue high-risk on-chain trading strategies.

Staking and Locked Token Purchases

Upexi’s strategy includes staking its Solana holdings, which Rudick said is producing a 5% to 6% yield paid in SOL. Staking allows token holders to help secure Solana’s proof-of-stake blockchain in exchange for rewards.

The company also purchases locked Solana tokens at a discount. Rudick said about 36% of Upexi’s holdings are locked tokens purchased at discounts generally in the range of 14% to 15%. Those tokens cannot immediately be sold or used in decentralized-finance applications, but Upexi’s buy-and-hold strategy enables it to acquire them below the price of freely tradable tokens, he said.

According to Rudick, the locked SOL holdings generally unlock monthly through January 2028 while continuing to receive staking yield. He said Upexi increased its Solana per share by 35% during the prior year through staking, locked-token purchases and capital-markets activity. By comparison, he said an investor who purchased and staked Solana directly in similarly sized and timed investments would have accumulated 3% more SOL.

• Staking yield of approximately 5% to 6% on the company’s treasury, according to Rudick.
• Approximately one-third of the treasury held in locked SOL purchased at a discount.
• Equity, convertible-note and other potential securities issuance intended to increase SOL per share when executed above the value of the underlying assets.

Balance Sheet and Cost Reductions

Rudick said the recent cryptocurrency bear market has led Upexi to focus on matters within its control, including reducing expenses and improving its balance sheet. The company reduced its employee count to 10 from 59 a year earlier, he said, and has guided for staking revenue to fully cover cash expenses on a go-forward basis.

He also said Upexi has raised equity, increased its cash position, reduced debt, extinguished some in-kind convertible notes and renegotiated credit terms to lower borrowing costs and collateral requirements. Rudick characterized the company’s credit risk as moderate relative to the value of its cryptocurrency holdings.

During the downturn, Upexi repurchased roughly 2 million shares, according to Rudick. He said the company could theoretically sell crypto and repurchase stock if its shares traded below the value of its assets, which he said could increase crypto per share.

Solana Investment Case

Rudick said the performance of Solana remains the primary determinant of Upexi’s results. He described Solana as a high-performance smart-contract blockchain designed for mass adoption, citing its parallel transaction processing, approximately 5 million daily active users and applications in stablecoins, tokenized assets and artificial-intelligence agent payments.

He said Solana has a 97% share of spot tokenized-equities trading volume and is leading in x402 payments, a payments protocol for AI agents. Rudick also cited activity by financial and technology companies including Visa, Mastercard, Western Union, Citi, BlackRock and Societe Generale on the network.

While acknowledging cryptocurrency market volatility, Rudick said Upexi believes blockchain adoption is in a secular expansion as regulatory clarity improves and large corporations increasingly use blockchain-based infrastructure. He said Solana’s market capitalization is about 4% of Bitcoin’s, which Upexi views as potential upside if adoption expands.

In response to an analyst question, Rudick said Upexi publishes its SOL-per-share figure daily on its website and estimated it at approximately 0.06 SOL per share at the time of the presentation.

About Upexi (NASDAQ:UPXI)

Upexi, Inc is a consumer products company that acquires, develops and operates brands sold through e-commerce and other retail channels. Its portfolio has included products in categories such as health and wellness, beauty, home goods, pet care, food and beverage, and apparel.

The company focuses on building and scaling digitally native brands by combining product development, supply-chain management, marketing, and marketplace distribution. Upexi's products have been offered through major online marketplaces, including Amazon and Walmart, as well as through direct-to-consumer websites.

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