Upexi, a consumer products firm, entered the digital asset space by raising $100 million in April. The company used the funds to purchase Solana, aiming to build a strong on-chain treasury. This decision helped boost its share price sharply. Over the past six months, UPXI stock gained more than 100%.
Following the initial increase, Upexi came back to the market to raise a further $200 million. It will spend some of the proceeds on increasing its Solana stake. The company will own approximately 1.65 million SOL after the fundraising is finished. At current prices, that stake is equivalent to approximately $284 million.
Solana treasury plan sets Upexi apart
The strategy of Upexi resembles that of other companies that are focusing on digital assets. Its methodology, though, is aimed at minimizing risk and long-term growth. Rather than going through heavy debt, Upexi is concentrating on raising funds via issues of stocks. Upexi believes that such a model will raise the value of a share of Solana.
Differently than Bitcoin specialist MicroStrategy, Upexi is establishing a treasury on a proof-of-stake chain. As a result, it can stake SOL for a return without exposing itself to undue risk. It also buys locked tokens at a discount in order to create extra value for shareholders.
Its funds are handled through known custodians and steer clear of risky blockchain action. Upexi’s plans were received well by the market. UPXI, alone on Wednesday, increased almost 39%, closing at $7.24. That was on top of a 65% rise in a week. Solana’s token was also up dramatically, hitting a multi-week high.
Upexi counts on Solana and U.S. crypto Laws
Leaders of Upexi see Solana as a powerful blockchain platform. It bets on the growing base of developers, high performance, and widespread adoption throughout the crypto industry. It is convinced that the design of Solana, including network effects, will generate value going forward.
With a combination of capital raises, staking rewards, and discounted buys, Upexi looks to increase digital asset holdings with limited risk. Its long-term direction is still aligned with the prospects of Solana. Traditional and cryptocurrency investors seem to be behind this direction.
With the U.S. inching towards crypto legislation, Upexi believes there’s more upside on the horizon. As institutions look at digital assets, Upexi thinks that it can be a major player. Its moves thus far would indicate a serious intention towards that end.
