Solana's Upexi faces 7.5% dip as $1B shelf registration raises investor concerns

Solana's Upexi faces 7.5% dip as $1B shelf registration raises investor concerns

Upexi's shares fell 7.5% after announcing plans to raise $1 billion for its Solana treasury amid a significant decline in crypto confidence. What’s next for this struggling strategy?

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Upexi has filed with the Securities and Exchange Commission to potentially raise up to $1 billion for expanding its Solana treasury and exploring related opportunities. Following this announcement, the company's shares fell by 7.5%, closing at $1.84 on Tuesday, although they rebounded slightly in after-hours trading to $1.92.

Currently, Upexi holds approximately 2.1 million SOL, valued at $262.3 million, positioning it as the fourth-largest corporate Solana treasury, as reported by CoinGecko. The company's focus has shifted significantly since late April when it transitioned from consumer products and e-commerce to concentrating on Solana.

Despite its ambitious plans, Upexi has not made any purchases of Solana since July 23, with the value of its holdings dropping from a peak of around $525 million in mid-September. The firm is currently facing a paper loss of 19% on its treasury as the price of Solana has decreased significantly from its all-time high of $293.31 to $123.75.

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