Shares of Upexi, a Tampa, Florida-based firm, plummeted 60% to $3.97 on the Nasdaq after a filing indicated insider sales. The company announced a shift in strategy late last year toward building liquidity in Solana. Tuesday’s plunge cut its market capitalization to just $148 million.
Upexi's pivot, announced in April, involved adopting a Solana treasury strategy akin to Michael Saylor's Bitcoin approach. Under this strategy, the firm holds digital token SOL in its reserves and deploys its venture capital to purchase additional SOL.
The firm’s market capitalization was just $3 million prior to its investment strategy’s announcement in April. After the news, Upexi’s market capitalization ballooned to around $600 million.
While Upexi’s shares have pulled back with the rest of the market, they are still up 73% since that strategic pivot was first disclosed. In April, Upexi publicized its intent to raise $100 million as a part of its new specialization.
The company finalized commitments from a number of investors, including GSR, Delphi Ventures and Morgan Creek Capital Management. They expect to acquire about 43.9 million common shares or pre-funded warrants per share through a PIPE investment.
The registration for sale of these shares recently became effective, allowing the company to sell them.
"It's pretty standard stuff. And so when the registration went effective last night, it meant they were registered for sale." - Allan Marshall
The movement towards crypto treasury strategies has picked up steam within the past year. More companies, such as Upexi, are proactively and intentionally diving into these dynamic strategies. Allan Marshall is the CEO of Upexi.
