Solana Treasury Stock Upexi Plunges 60%, Did Early Coin Hoarders Begin Taking Profits?

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Upexi investors registered 43.85 million shares of resale stock, equivalent to the company's initial float in April. Other Sol Treasury companies rated as "Hold" by Cantor, such as Sol Strategies and DeFi Development, also experienced a price drop, while SharpLink Gaming saw its stock price plummet over 70%.

Original Title: "Upexi Stock Price Plunges 60% in a Single Day, Listing Rug Pull Has Become a New Trend of 'Rug Pulling'"
Original Source: Bright, Foresight News

Editor's Note: On June 25th, according to Futu data, Upexi (stock code: UPXI) closed at $3.33, down 16.12% from the previous day (June 24th).

On the evening of June 24th, the U.S.-listed Solana Treasury company Upexi (stock code: UPXI) saw its intraday stock price plummet over 60%, closing at $3.97. It is reported that the cause of Upexi's flash crash this time was that earlier investors registered 43.85 million shares of resale stock, which was already equivalent to the company's initial float in April.

Ironically, on June 17th, Wall Street brokerage firm Cantor rated Solana Treasury's DeFi Development, Upexi, and Sol Strategies, all with a buy rating. The brokerage firm set a target price of $16 for Upexi. Analysts led by Thomas Shinske wrote, "We believe the future of bet-the-farm finance will be on-chain, with Solana being the preferred chain." Cantor pointed out that Solana's main competitor is the Ethereum blockchain, but its technology is far superior on all metrics to its larger-scale peers, making more sense to use Solana as a financial asset than Ether.

Early Coin Hoarders are Starting to Retreat

Upexi and its predecessor, Grove, Inc., is a company focused on the development, manufacturing, and distribution of consumer products, owning multiple innovative brands such as the medicinal mushroom product brand Cure Mushrooms, the pet care brand LuckyTail, and the energy gummy-focused Praxanthine series, selling products through e-commerce platforms such as Amazon, Shopify, and its own channels. As of April 18, 2025, its market value was only $3 million and was in a continuous net loss state, on the brink of delisting.

Then, on April 21st, Upexi announced a $100 million financing round led by the well-known crypto market maker GSR, with approximately 95% earmarked for the establishment and operation of the Solana Treasury reserve. This news directly boosted Upexi's stock price with an intraday surge exceeding 600%.

Upexi's strategy is to "go all in on Sol," and among all Sol treasury companies, Upexi is actually most similar to a Solana version of MicroStrategy. Upexi has entered into securities purchase agreements with certain investors to issue and sell 43.8596 million shares of common stock or pre-funded warrants at a price of $2.28 per share, with an expected fundraising of up to $100 million. The company plans to use approximately $5.3 million of the proceeds for working capital and debt repayment, with the remaining funds allocated to establishing the company's Solana treasury system and increasing its holdings of Solana assets.

Meanwhile, "fast come, fast go." In June, Upexi's investors registered the resale of 43.85 million shares of stock, exactly the same as the company's initial float in April. The prospectus submitted on Monday shows that the original buyers now wish to sell 35.97 million shares of common stock and 7.89 million shares of stock linked to pre-funded warrants. The filing indicates that if the warrant holders exercise their warrants, Upexi will only receive $7,890, with no proceeds from the sale of the stock.

Upexi stated in the documents submitted to the U.S. Securities and Exchange Commission: "We will not sell any common stock in this offering, and we will not receive any proceeds from the sale of stock by the selling stockholders."

Upexi is in a tough spot, but several other Sol treasury companies rated as "Buy" by Cantor are not faring well either.

Sol Strategies, one of the earliest to HODL, has taken a relatively stable approach, initially relying on external acquisitions to expand its business and later shifting to natural growth driven by fundraising and Sol infrastructure accumulation. The current price is down 60.8% from its all-time high.

DeFi Development, which transitioned from a real estate company, has seen a 53.6% drop from its peak, with a 20.88% drop yesterday.

As for the "Ethereum MicroStrategy," SharpLink Gaming, its current stock price is also disappointing.

On June 13, SharpLink Gaming filed an S-3ASR registration statement with the U.S. SEC, authorizing the resale of up to 58.6997 million shares of PIPE financing-related stock. This means that over 100 PIPE investors can opportunistically sell their holdings. Panic quickly spread, and SharpLink Gaming plummeted over 70% during the day. Despite SharpLink board chairman and ConsenSys CEO Joseph Lubin clarifying that the filing is just a routine registration process post-PIPE and is meant to "pre-register shares for potential resale," not indicative of any actual sell-offs, the subsequent stock performance unfortunately proved that the previously over 40x surged SharpLink Gaming was merely a flash in the pan.

Newly started coin hoarders are still frenziedly entering the market

Although the "microstrategies" of ETH and Sol have all failed, new meme coin treasury companies are still FOMOing in.

On June 24, following the previous market news that "several BNB strategic reserve companies are forming," Nano Labs Ltd (stock code: NA) announced that it has signed convertible promissory note subscription agreements with multiple investors for a total issuance of $500 million in convertible notes. The notes have a term of 360 days, with no interest on principal before maturity. Holders can choose to convert the notes into Class A common stock of the company within the term, with an initial conversion price of $20 per share. Nano Labs plans to initially acquire $1 billion worth of BNB through this financing and private placement, targeting 5% to 10% of the total circulating supply of BNB for long-term holding.

Upon this news, Nano Labs' pre-market stock immediately surged by 65%.

On June 23, Eyenovia, Inc. (stock code: EYEN), a digital eye care technology company, announced that it has entered into a securities purchase agreement to conduct a $50 million PIPE (private investment in public equity) offering to institutional accredited investors to establish its Hype reserve plan. The company had full-year revenue of only $56,000 in 2024, a net loss of $50 million, and liabilities exceeding $10 million. Facing cash flow exhaustion and various reasons such as the failure of new product trials, Eyenovia is on the brink of delisting.

The strategy of transitioning to the HYPE reserve has given Eyenovia an opportunity for "extending its life," and after the related news came out, Eyenovia's stock price skyrocketed by 134% in a single day.

With the gradual relaxation of the U.S. crypto environment, the frenzy of meme stock coins is far from dissipating. However, the prolonged downturn in the stock prices of early "on-chain microstrategies" players has sounded the alarm for latecomers.