Upexi posts $179 million net loss as Solana decline weighs on treasury

Nasdaq-listed Upexi (UPXI) reported sharply higher revenue in its fiscal second quarter ended Dec. 31, but recorded a steep net loss as falling Solana prices pressured the value of its SOL treasury holdings.

Total revenue reached $8.1 million, nearly doubling from $4 million a year earlier. Digital asset operations contributed $5.1 million — primarily from staking income — surpassing the $2.9 million generated by the company’s consumer brands segment. Gross profit rose 126% year over year to $6.7 million, largely driven by the addition of its digital asset treasury business last year.

Despite the revenue growth, Upexi reported a net loss of nearly $179 million, compared with a $1.3 million loss in the same quarter a year ago. The decline was mainly attributed to $164.5 million in unrealized losses from fair value adjustments on its crypto holdings at quarter end, along with $8.3 million in stock-based compensation expenses. Executives noted that most of the losses were non-cash accounting adjustments, while underlying treasury operations continued to generate income through SOL staking rewards and token accumulation.

At quarter end, Upexi held more than 2.17 million SOL, with approximately 95% staked. During the earnings call, management said holdings have since increased to nearly 2.4 million SOL, although updated SEC filings have yet to reflect the revised figure.

The company also bolstered liquidity through several capital raises, including a $36 million convertible note backed by locked SOL and a $7.4 million registered direct offering, bringing cash on hand to roughly $9.7 million. A previously announced $50 million share repurchase program remains in effect.

Solana is currently trading below $80, near its lowest level in over two years. Meanwhile, Upexi shares recently fell to an all-time low around $0.90, down sharply from highs above $22 reached after the company pivoted to a crypto treasury strategy last year.