Upexi Inc. tumbled as much as 62% following the filing of a registration statement to allow investors to sell common shares in the consumer brands company turned cryptocurrency accumulator.
In April, the Tampa, Florida-base firm said it was raising $100 million as part of a pivot that will see the company start to accumulate the cryptocurrency Solana. At the time, the firm announced it has entered into agreements with investors to buy about 43.9 million common shares, or pre-funded warrants. The investors filed with the U.S. Securities and Exchange Commission on Monday to be eligible to sell the stock.
“It’s pretty standard stuff. And so when the registration went effective last night, it meant they were registered for sale,” Upexi Chief Executive Officer Allan Marshall, said in an interview. “It doesn’t mean the investors are selling or wanna sell, but it means they can.”
Upexi has adopted a Solana treasury play, similar to what Michael Saylor’s Strategy is implementing with Bitcoin, by holding the digital token SOL in its reserve and allocating capital to buy more of the token.
“We totally believe in the strategy and long term, one day, we believe that we’ll be able to execute and the strategy’s gonna be very successful for us in the future,” Marshall said.
Participants in the so-called PIPE investment in Upexi included GSR, Delphi Ventures and Morgan Creek Capital Management, according to data from Pitchbook.
Another crypto treasury firm, SharpLink Gaming Inc., saw its shares plunge more than 70% on June 13 following a similar filing.
This story was originally featured on Fortune.com
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