From soft candy to cryptocurrency, U.S.-listed company Upexi receives $100 million in cryptocurrency financing and bets on Solana

Following the trend of imitating Strategy's Bitcoin investment and accumulation financial strategy, Solana's strategy also has many imitators, including Sol Strategies Inc., a Canadian listed company, Janover, a US Nasdaq listed company, and Upexi, a consumer goods listed company, has become the latest traditional company to hold a similar strategy.

On April 21, GSR, a well-known cryptocurrency trading and investment company, announced that it had made a private equity investment (PIPE) of up to $100 million in Upexi, Inc. (stock code: UPXI), a consumer goods company listed on Nasdaq, betting on its upcoming comprehensive transformation of Solana's financial strategy. Affected by the news, Upexi's stock price once soared more than six times during the day.

As early as February of this year, Upexi announced a roadmap around cryptocurrency. The consumer goods development, manufacturing and distribution company showed a significant decline in revenue in its latest financial report, and net losses continued. Embracing cryptocurrency has become a transformation strategy.

GSR bets on Upexi's Solana financial strategy and leads $100 million private equity investment

GSR provides direct financial support for Upexi's new on-chain strategy. Upexi announced that it has signed a securities purchase agreement with some investors to issue 43,859,649 shares of common stock (or prepaid warrants as an alternative) at $2.28 per share, with a total fundraising amount of approximately $100 million (before deducting placement agent fees and other issuance expenses).

Upexi plans to use approximately $5.3 million of this for working capital and debt repayment, and the remaining funds will be used to build the company's Solana-based financial system and accumulate Solana assets.

In addition to GSR's lead investment, a number of institutions and individuals in the cryptocurrency circle participated in this round of financing, including Big Brain, Anagram, Delphi Ventures, White Star Capital, Maelstrom (Arthur Hayes Family Office), Hivemind, Borderless, Morgan Creek, Elune Capital, Delta Blockchain Fund, etc. In addition, several well-known angel investors participated, including Austin Federa, Frank Chaparro, Joey Krug, Bartosz Lipinski, Larry Wu and Jordan Prince, as well as Allan Marshall, CEO of Upexi.

Lily Liu, president of the Solana Foundation, also said that the transaction marks another step in connecting traditional financial institutions with decentralized infrastructure.

After the announcement, the market showed that the share price of Nasdaq-listed Upexi rose 639.20% to $16.78. As of the close of U.S. stocks on April 21, Upexi's share price fell back to $9.89.

While this news attracted widespread attention in the crypto market, some crypto industry insiders also gave their own positive views. Arif Kazi, head of business development at Sonic SVM, said on the X platform: "The public market's perception of on-chain returns has changed. Upexi is not hedging risks - they regard SOL staking as infrastructure. Native staking is becoming an institutional-grade financial tool."

He said this may be the largest Solana native financial allocation for a US listed company. Pricing is above market, with no tokens, lockups, or convertibles. Solana’s architecture makes this possible: parallel execution through Sealevel technology, sub-second final confirmation times, and a stable validator network layer. This is infrastructure built for institutions. When treasury strategies are combined with DeFi primitives, it’s not just a fit, it’s an acceleration. Solana now provides a playbook for capital allocators.

From gummies to cryptocurrencies: Upexi’s on-chain transformation

Headquartered in Tampa, Florida, Upexi used to focus on the research, development, manufacturing, and distribution of consumer products. Its brands include medicinal mushroom products Cure Mushrooms, pet care brand LuckyTail, and the Prax series of energy gummies. Although this traditional consumer product model has allowed it to gain a foothold in the market, it has never received much attention in the capital market. As of April 18 (local time last Friday), its market value was only $3 million.

Upexi, Inc.’s latest financial report shows the significant financial challenges it faces. In the six months ending December 31, 2024, the company's revenue declined and net losses continued. Revenue during the reporting period was $8.36 million, a significant decrease from $15.74 million in the same period last year. The company's net loss was $2.93 million, slightly better than the loss of $3.79 million in the same period last year.

Perhaps under such financial pressure, cryptocurrency is seen as a new opportunity by Upexi. In fact, Upexi's crypto strategy has been gradually launched a few months ago. On March 3, Upexi announced that its subsidiary Quantum Hash had signed a letter of intent (LOI) to acquire a 2-megawatt crypto mining farm. The mine is currently less than half utilized. Quantum Hash plans to upgrade existing equipment after the transaction is completed and introduce the latest and fastest mining machines to maximize computing power and monthly Bitcoin production.

On February 6, Upexi announced that it is actively seeking further investment opportunities in the near future to expand its business portfolio through direct investment in cryptocurrencies, mining businesses, and mergers and acquisitions in the fintech field. The company updated shareholders on its current business operations and disclosed its long-term encryption and mining strategic plans.

Upexi CEO Allan Marshall, 55, joined the company as CEO in May 2019. He had previously retired and was a serial entrepreneur who had focused on the technology industry in recent years. He began his career in the transportation and logistics industry. He said, "The company is in the midst of a series of rapidly developing opportunities and will continue to promote the implementation and advancement of various strategies in the coming weeks and months."

According to the official website, after the transformation, Upexi has the following development strategies: First, the financial strategy: a diversified digital financial strategy covering a variety of altcoin asset portfolios; second, the strategic direction: to increase financial returns through mining, node operation, staking, streaming services and HaaS (computing power as a service). In terms of growth path, business expansion will be achieved through the strategic use of lending, liquidity provision, mining, streaming services and capital markets.

Currently, Upexi has announced its strategic roadmap for 2025, including:

Bitcoin and altcoin mining: Own low-price mining facilities of at least 1-3 megawatts (MW) within 90 days; complete due diligence on current 2-5 MW mining projects in operation; aim to develop to 10-20 MW mining facilities; expand mining business to other altcoins, such as Ethereum and AI-driven blockchain assets.

Crypto asset portfolio construction: Build a diversified digital asset portfolio, including Bitcoin, Ethereum, Solana, Render, Chainlink; seize favorable opportunities for strategic buying during market fluctuations; hold other assets with blockchain infrastructure growth potential and AI integration value.

Blockchain-based financial focus direction. Explore opportunities in the following areas: Staking, DeFi Lending, blockchain projects with revenue generation models

Long-term focus areas include: Web3, DeFi, AI-driven blockchain growth

Sol strategy aims to achieve organic growth, market volatility may bring "paper loss dilemma"

In this GSR investment in Upexi, no more specific content of Solana's financial strategy was disclosed. However, SOL Strategies, which first proposed the Sol strategy, may provide a sample for Upexi. Its CEO Leah Wald recently talked about the company's strategy and said that comparing SOL Strategies to Solana's Microstrategy is actually an incomplete analogy. Leah Wald said, "In my opinion, the limitation of this model is that it simply plays the "net asset value (NAV) game", that is, increasing the value of the company by accumulating assets, but this alone is not enough. Our strategy is to achieve growth in a slower but steady way. In the early stage, we mainly rely on external acquisitions (inorganic growth) to expand our business, such as acquiring validators and related assets. Over time, we will gradually turn to natural growth based on our own capabilities (organic growth).

He said that the ultimate goal of SOL Strategies is to become Solana's infrastructure company. In the process, we are indeed accumulating as much SOL as possible and staking it to our validator nodes. But this is only part of the overall strategy. We are not just "buying SOL", but in Solana . It is worth noting that as more and more listed companies are actively promoting crypto asset reserve plans, this strategy is becoming a new trend in corporate asset allocation. However, with the fluctuations in the global economic environment, the panic caused by policy uncertainty, and the concentrated exit of profit-taking, the crypto market has experienced drastic fluctuations, and many listed companies will also fall into the dilemma of floating losses on the books. In general, Upexi, which is struggling to find a breakthrough in the traditional consumer goods market, is embarking on a radical transformation from "soft candy to cryptocurrency". The $100 million financing not only provides a strong boost to its Solana fiscal strategy, but also opens up a broader imagination space for its mining, crypto asset portfolio and blockchain financial layout. With the support of mainstream institutions such as GSR, Upexi may provide a reference template for more listed companies to get involved in on-chain finance. But this transformation journey is still full of uncertainty. From the sharp fluctuations in stock prices, to the continuous losses in the main consumer goods business, to the high risks and policy challenges of the crypto market itself, whether Upexi can find a truly sustainable growth path from the "crypto experiment" in the future still needs time to verify.