Financial Insights That Matter
Upexi notched a triple-digit stock gain on Monday after announcing plans to accumulate millions worth of crypto.
The self-described brand owner, specializing in the “development, manufacturing, and distribution of consumer products,” has reached an investment agreement to help create a Solana token treasury.
The company’s stock rocketed by as much as 745% early in Monday’s session, before paring gains to close 335% higher at $9.89 a share.
In a Monday announcement, the Tampa-based firm disclosed a deal to raise $100 million to buy Solana tokens. The crypto trading and investment firm GSR was the lead investor, ahead of several crypto venture firms that participated in the deal.
“It’s encouraging to see institutions exploring blockchain infrastructure in meaningful ways,” Lily Liu, president of the Solana Foundation, said in a press release. “GSR and Upexi’s announcement highlights growing interest in using Solana for real-world financial applications, and it’s another signal of how traditional finance and DeFi are starting to intersect.”
It also shows how more firms are adopting cryptocurrencies, mimicking Strategy’s hugely lucrative bitcoin strategy.
Michael Saylor’s bitcoin buying spree has pushed the business software company’s stock up 2,500% in five years. Saylor has pushed for other firms to embrace cryptocurrencies as a viable treasury option, and some have bought into the idea.
Apart from Upexi, other corporate bitcoin adopters include Marathon Holdings, Japanese firm Metaplanet, and a biopharma company called Acurx Pharmaceuticals.
Upexi stands out for its focus on Solana. The token, typically associated with the memecoin market, is down 30.4% year-to-date.