Upexi to raise $200 million to expand Solana treasury to 1.65 million SOL
Quick Take Upexi raised $200 million in a combined private placement of common stock and convertible notes, which the firm plans to funnel into more SOL purchases. Upexi expects to have 1.65 million SOL, worth around $273 million at current prices, upon closing its convertible note offering around July 16.
Consumer products manufacturer and Solana treasury firm Upexi (ticker: UPXI) plans to raise $200 million in a combined private placement of common stock and convertible notes, which the company will use to purchase more SOL.
Upexi netted around $50 million in net proceeds from selling approximately 12.5 million shares of common stock at $4 per share to institutional investors, qualified purchasers, and the firm's own CEO, Allan Marshall, according to a release issued on Friday . The equity offering is expected to close around July 14.
The firm also plans to raise $150 million from a securities agreement led by the crypto-native VC Big Brain Holdings , exchanging locked and spot Solana for the purchase of convertible notes. Once the convertible note offering closes on or around July 16, the company will absorb the SOL underlying the convertible note offering into its crypto treasury. It expects to have 1.65 million SOL, worth approximately $273 million at current prices, and more than double the 735,692 SOL ($122 million) it previously disclosed.
The investment advisory and brokerage services firm Alliance Global Partners serves as the sole placement agent for Upexi's common stock and convertible notes offerings.
Upexi pivoted toward aggressively building out its SOL treasury in April. The firm secured a $100 million private placement in public equity (PIPE) led by the crypto trading and liquidity firm GSR to jumpstart its SOL accumulation strategy, The Block previously reported.
Upexi common shares UPXI traded on the Nasdaq at $5.29 per share, increasing around 5.81% within the past 24 hours as of publication. The firm plans to tokenize its public equity through Open Bell , a Securities and Exchange Commission-registered platform from the tokenized asset management firm Superstate, to improve liquidity and increase accessibility with decentralized finance applications.
Solana was valued at $166 per token, The Block's SOL Price Page showed as of publication. In the past day, SOL's price rose 5.7% and the digital asset brought in $15.1 billion in trading volume. Solana is the sixth largest cryptocurrency by it market capitalization of $89 billion.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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