Solana Treasury Upexi Sees Slide in Shares After $1B Capital Raise Filing

Upexi shares closed Tuesday down 7.54% after the company filed a shelf registration with the US Securities and Exchange Commission to raise up to $1B. The filing allows the company to issue common stock, preferred stock, debt securities, warrants, or bundled units over time.

The stock closed the regular session at $1.84. After hours trading showed a modest bounce, with shares rising 4.35% to $1.92. The market reaction followed concerns around dilution and timing as crypto prices remain under pressure.

Upexi said the proceeds would be used for general corporate purposes. Its main activity is buying Solana and staking the tokens to earn yield.

Solana Treasury Strategy Under Pressure

Upexi holds 2.1M SOL worth $262.3M, based on CoinGecko data. This makes it the fourth largest corporate Solana holder. The company shifted its strategy in late April, moving away from consumer products and e commerce toward building a Solana treasury.

However, purchases have stalled. Upexi has not bought additional SOL since July 23. At that time, Solana prices were far higher than current levels.

The value of its holdings peaked near $525M in mid September. Since then, the balance has dropped by more than half. At current prices, the company is sitting on a paper loss of about 19% on its Solana position.

The filing comes at a time when treasury driven crypto strategies are losing momentum. Across the market, fewer firms are adding large token positions as prices trend lower and volatility remains high.

Solana Price Weighs on Balance Sheets

Solana is trading at $121.4. The token is down around 58% from its all-time high of $293.31 set on January 19, 2025, according to CoinMarketCap.

The drop has put pressure on companies that built balance sheets around token accumulation. With SOL price down sharply, staking rewards have not been enough to offset price losses.

Upexi’s decision to file for a large capital raise signals a push to keep its strategy flexible. The filing allows the company to act quickly if market conditions change, but it also raises dilution risk for shareholders.

For now, traders are reacting to the timing. With Solana still weak and no new purchases since July, the market is questioning when and how new capital would be deployed.