Upexi Shares Plunge 60% as 43.85 Million Shares Registered for Resale

Upexi, a Florida-based e-commerce startup, experienced a significant drop in its share price on Tuesday, June 24, as the U.S. market opened. The company's shares, trading under the UPXI ticker, plummeted by approximately 60% following the registration of 43.85 million shares for resale. This volume of shares is equivalent to the company’s initial float in April, which was intended to fund its Solana treasury plans.

The prospectus filed on Monday revealed that there is more offloading to be done, as buyers have indicated their intention to sell 35.97 million common shares plus 7.89 million shares tied to pre-funded warrants. Despite the significant share sales, Upexi will not profit from these transactions. According to documents sent to the U.S. Securities and Exchange Commission (SEC), Upexi will collect only $7,890 if holders exercise the warrants and will not receive any proceeds from the sale of shares by the selling stockholders.

Upexi made headlines earlier for raising $100 million after announcing plans to establish a corporate Solana treasury, aiming to replicate the success of Strategy’s Bitcoin playbook. The company purchased its first set of Solana coins on April 29, acquiring a total of 45,733 tokens. By May 29, its holdings had increased to 679,677 SOL following multiple purchases of discounted vested coins.

Investment bank Cantor Fitzgerald shared a $16 price target for Upexi shares in June, after the company became one of the largest publicly traded Solana holders. Cantor analysts view Solana as superior to ETH, its main competitor, and believe that Solana makes sense as a treasury asset due to its adequate room for growth, buzzing developer activity, and viral meme culture.

Last week, Matthew Sigel, an analyst at Cantor Fitzgerald, initiated coverage on three major Solana treasury businesses: DeFi Development Corp, Upexi, and Sol Strategies. He suggested a bullish outlook, stating that Solana-oriented balance sheets deserve bigger premiums than BTC companies due to native revenue opportunities and higher volatility. The report highlighted Solana as a layer-1 blockchain with superior throughput and lower transaction fees compared to Ethereum (ETH).

Cantor analysts acknowledge that Bitcoin (BTC) is well-suited as a strategic reserve asset with established market acceptance. However, they also see Solana’s potential as the technological backbone for transactions and marketplaces in the digital economy. This suggests that analysts at Cantor view Solana as a utility-driven blockchain rather than a store of value like BTC or a memecoin chain. The report argues that Solana treasury companies are betting on a future where financial transactions and applications will predominantly be on-chain, with Solana as the preferred blockchain.