- Consumer products firm Upexi has secured $100 million in funding, with 95% allocated to establishing a Solana treasury reserve.
- The announcement triggered a massive 335% surge in Upexi’s stock price, reaching as high as $22 on Monday.
- This move follows other public companies like Janover and Strategy that have created cryptocurrency treasuries as a business strategy.
Nasdaq-listed consumer products company Upexi announced on Monday that it has raised $100 million in a new funding round, with plans to allocate approximately $95 million toward creating and maintaining a Solana treasury reserve. Following the announcement, the company’s shares experienced a dramatic 335% increase, closing at $9.89 after reaching a high of $22 earlier in the day.
The funding was secured through the sale of 44 million common stock shares priced at $2.28 each, according to a press release published on Nasdaq’s website. GSR led the funding round with participation from several crypto-focused firms including Delta Blockchain Fund, Delphi Ventures, and Hivemind, along with multiple angel investors.
Growing Trend of Corporate Crypto Reserves
Upexi’s initiative comes just days after real estate financing platform Janover purchased an additional $10.5 million worth of Solana for its recently established cryptocurrency treasury. While Upexi plans to use approximately $5.3 million of the raised funds for working capital and debt reduction, the vast majority will go toward building its Solana holdings.
The company’s offering is expected to close on April 24, pending satisfaction of customary closing conditions. Meanwhile, Solana is currently trading at $136, down 0.4% over the past 24 hours, according to data from CoinGecko.
Following the Bitcoin Treasury Playbook
Upexi’s decision aligns with a broader trend of public companies following the strategy pioneered by Strategy, which has accumulated more than $47 billion worth of Bitcoin over the past five years. On Monday, Strategy announced the purchase of 6,500 Bitcoin worth $556 million in the previous week.
Similarly, Japanese company Metaplanet, which transitioned from the hotel business to become a Bitcoin treasury, revealed it had added 330 BTC valued at over $28 million to its holdings.
The move by Upexi represents an expanding interest among publicly traded companies to diversify into the cryptocurrency space, with Solana emerging as an alternative to the Bitcoin-dominated corporate treasury approach. The company’s dramatic stock price increase demonstrates significant investor interest in this strategy.
AI-generated by Claude. Information based on original source material.
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