Solana-accumulating company Upexi posts record quarterly results, turns profitable

Nasdaq-listed Upexi posted record quarterly results thanks to a surge in its Solana (SOL) holdings. Its unrealized gains alone amounted to $78 million, and net income turned positive year over year.

According to The Block on the 11th (local time), Upexi recorded revenue of $9.2 million for fiscal Q1 (as of September 30), more than double the $4.4 million a year earlier. Revenue from the digital assets segment was $6.1 million, mostly generated from Solana staking income.

Net income for the period was $66.7 million, turning positive from a $1.6 million loss in the same period last year. The company explained, "The roughly $78 million in unrealized mark-to-market gains from the Solana treasury was a key factor in the improvement in net income."

Upexi CEO Allan Marshall said, "Since the beginning of this year, we have strengthened the strategy of holding Solana as a cash-like asset so that financial assets directly generate revenue," adding, "Most of the Solana we hold is generating meaningful interest income, turning the treasury into productive assets."

Upexi recently expanded its Solana purchases, increasing total holdings to over 2.1 million SOL, making it the second-largest after DeFi Development Corporation (DeFi Development Corp.). The Block's data dashboard reported that SOL holdings per share also rose 82% quarter over quarter.

Marshall said, "We are based on 'assets that can win,' and are in a favorable position to create additional value through staking yields and locked-token discount mechanisms."

Earlier, Upexi secured funds to expand its Solana financial strategy by privately issuing $200 million of common stock and convertible bonds and entering into an equity investment agreement with A.G.P. worth $500 million.

After the earnings announcement, Upexi's shares rose 6% in after-hours trading to $3.21, but are still down about 15% year-to-date. Earlier this year, 43 million shares were released into the market, and the stock plunged 60% in one day.