Solana treasury company Upexi tumbles 60% after 43 million shares hit the market

Upexi (ticker UPXI) shares fell approximately 60% at the U.S. market open on Tuesday after investors registered 43.85 million shares for resale — stock equal to the company’s initial float in April, intended to fund its Solana treasury plans.

A prospectus filed on Monday shows that buyers now want to offload 35.97 million common shares, plus 7.89 million shares tied to prefunded warrants. The filing notes Upexi will collect just $7,890 if holders exercise the warrants and nothing from the share sales.

"We are not selling any shares of Common Stock in this offering, and we will not receive any proceeds from the sale of shares by the Selling Stockholders," documents submitted to the U.S. Securities and Exchange Commission read.

The Florida-based e-commerce startup closed Monday's session at $9.25 per share, valuing the firm at just over $379 million. The looming supply shock sent the bid under $4 at today's open, Yahoo Finance data show.

Upexi previously raised $100 million after outlining a plan to establish a corporate Solana treasury — a strategy executives told The Block they hoped would mirror success from Strategy’s bitcoin play.

The company purchased its first tranche of Solana coins on April 29, comprising 45,733 tokens, a few days after completing its public fundraising effort. A month later, its holdings had reached 679,677 SOL following multiple purchases of discounted vested coins.

In June, investment bank Cantor Fitzgerald shared a $16 price target for Upexi shares after it became one of the largest publicly traded Solana holders. Cantor analysts see SOL as superior to its main competitor ETH, noting Solana "makes sense" as a treasury asset due to its room for growth based on its market cap and buzzing developer activity.