TLDR
- Upexi reported $9.2 million in total revenue for Q1, up from $4.4 million year-over-year, with digital asset revenue hitting $6.1 million primarily from staking income.
- The company posted net income of $66.7 million compared to a $1.6 million loss last year, driven by $78 million in unrealized gains on its Solana holdings.
- Upexi holds over 2.1 million SOL worth approximately $319 million, making it the second-largest Solana treasury behind DeFi Development Corp.
- The board authorized a $50 million share buyback program as the stock dropped 50% since early October and nearly 90% from April highs.
- UPXI shares closed at $3.21, down 15% year-to-date, while SOL traded around $147-$155, down roughly 20% for the year.
Upexi delivered a record quarter powered by its Solana treasury strategy. The Nasdaq-listed company reported total revenue of $9.2 million for its fiscal first quarter.
That compares to $4.4 million in the same period last year. Digital asset revenue made up $6.1 million of the total, coming primarily from staking income.
The real story sits in the net income numbers. Upexi posted net income of $66.7 million, or $1.21 per share. Last year’s quarter showed a net loss of $1.6 million, or $1.55 per share.
The company recorded approximately $78 million in unrealized gains on its Solana holdings. This accounting boost drove the income surge.
Gross profit reached $8.3 million, marking a 183% year-over-year increase. CEO Allan Marshall said the treasury strategy has turned the balance sheet into a productive, revenue-generating asset.
The quarter included the close of a $200 million private placement of common stock and convertible notes. Upexi also secured a $500 million equity line agreement with A.G.P.
Treasury Holdings and Market Position
Upexi now holds more than 2.1 million SOL on its balance sheet. At current prices, that’s worth approximately $319 million.
The company ranks as the second-largest Solana treasury. Only DeFi Development Corp holds more SOL.
The firm reported an 82% increase in adjusted SOL per share during its latest purchase update. Nearly all of the company’s Solana generates yield through staking.
Marshall said the company is in an advantaged position with an asset offering unlimited upside. The treasury strategy includes value from both staking and discounted locked tokens.
Stock Performance and Buyback Decision
The stock tells a different story than the balance sheet. UPXI shares closed at $3.21, up 6% in after-hours trading following the earnings report.
But the stock remains down 15% year-to-date. Shares dropped 60% in a single day earlier this year when 43 million shares hit the market.
Things got worse recently. The stock fell over 50% since early October and nearly 90% from April highs.
The board authorized a $50 million stock repurchase program in response. The company can buy shares on the open market depending on conditions and liquidity.
Marshall said the buyback would be executed opportunistically. The plan won’t affect the company’s ability to invest in growth or maintain its treasury.
Broader Treasury Firm Trends
Upexi joins other digital asset treasury firms turning to share repurchases. Stock prices across the sector have tumbled over recent months.
Many DAT companies now trade below the value of crypto on their balance sheets. This makes buybacks potentially accretive to shareholders.
SOL traded around $147-$155 during this period. The token dropped more than 7% over 24 hours at one point.
Solana is down approximately 20% year-to-date. The price fell almost 30% over the past month alone.
Upexi was among the first publicly traded firms to pursue a non-bitcoin treasury strategy. The company raised funds in April and brought on Arthur Hayes and SOL Big Brain as advisors.
UPXI shares were down 4.4% on Thursday as crypto prices continued sliding. The company holds 2.1 million SOL valued at roughly $319 million.
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