Upexi Inc. tumbled 60% following the filing of a registration statement to allow investors to sell common shares in the consumer brands company turned cryptocurrency accumulator.
In April, the Tampa, Florida-base firm said it was raising $100 million as part of a pivot that will see the company start to accumulate the cryptocurrency Solana. At the time, the firm announced it has entered into agreements with investors to buy about 43.9 million common shares, or pre-funded warrants. The investors filed with the US Securities and Exchange Commission on Monday to be eligible to sell the stock.
“It’s pretty standard stuff. And so when the registration went effective last night, it meant they were registered for sale,” Upexi Chief Executive Officer Allan Marshall, said in an interview. “It doesn’t mean the investors are selling or want to sell, but it means they can.”
Another crypto treasury firm, SharpLink Gaming Inc., saw its shares tumbled more than 70% on June 13 following a similar filing. Analysts attributed the plunge to retail investors retreating in anticipation of institutional investors dumping shares to turn a quick profit once they were eligible to sell the common stock.
Upexi fell 60% to $3.97 in trading on the Nasdaq stock market. The shares are still up 73% since the pivot in strategy was announced in April.
Upexi has adopted a Solana treasury play, similar to what Michael Saylor’s Strategy is implementing with Bitcoin, by holding the digital token SOL in its reserve and allocating capital to buy more of the token.
“We totally believe in the strategy and long term, one day, we believe that we’ll be able to execute and the strategy’s gonna be very successful for us in the future,” Marshall said.
Participants in the so-called PIPE investment in Upexi included GSR, Delphi Ventures and Morgan Creek Capital Management, according to data from Pitchbook.
A private investment in public equity investment, or PIPE, is a way for a publicly traded company to raise capital by selling shares to private investors. New crypto treasury companies using the tactic have increased over the last year, including transactions for Tether-backed Twenty One Capital, SharpLink and DeFi Development Corp.
Upexi, which had a $3 million market capitalization before its investment was announced in April, saw the value of the company surge to around $600 million. It was back down to around $148 million on Tuesday.
Update, June 24, 2025: Adds in closing share price for Upexi.
Source link
