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Upexi, a supply chain management firm, has announced a significant foray into the digital asset space. The company revealed a $100 million capital raise, with over 90% earmarked for building a Solana (SOL) treasury. This unexpected move has ignited investor frenzy, sending Upexi’s shares on a parabolic surge.
Following the April 21st announcement, Upexi’s stock price on the Nasdaq witnessed an astounding 632% jump, leaping from a $2.30 close on April 17th to $16.79 at the time of writing. This meteoric rise underscores the market’s keen interest in companies diversifying their holdings with cryptocurrencies beyond Bitcoin.
The $100 million raise attracted notable players in the crypto venture capital arena, including Arthur Hayes’ family office, Delta Blockchain Fund, Delphi Ventures, Hivemind, Borderless, and White Star Capital. The funding round involved the sale of approximately 44 million common shares priced at $2.28 each.
Also Read: Solana, Uniswap, and Consensys Donated to Donald Trump Before SEC Dropped Investigations
This strategic shift comes despite Upexi reporting a $3 million profit in the last quarter of 2024, a 34.8% decrease compared to the same period in 2023. The company’s decision to embrace a Solana treasury mirrors a trend initiated by companies like MicroStrategy, which famously adopted a Bitcoin treasury strategy in 2020, witnessing a significant boost in its stock value. Over 13,000 companies are now estimated to have some exposure to MicroStrategy’s strategy.
While Bitcoin remains the dominant choice for corporate crypto treasuries, Upexi’s focus on Solana aligns it with a smaller cohort, including Janover, which recently adopted a similar strategy. Solana, the native token of the high-speed Solana blockchain, has gained prominence during the latest crypto bull market, fueled by its efficiency and growing ecosystem of decentralized applications and memecoins. Upexi’s bold bet on Solana marks a significant development in the evolving landscape of corporate cryptocurrency adoption, signaling a potential diversification beyond the established dominance of Bitcoin in company treasuries.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
