Upexi Seeks Up to $23 Million to Strategically Buy Solana (SOL)

JH Kim

Summary

Upexi said it will raise up to $23 million to strategically buy SOL.
Upexi said it plans to use the funds from this raise for SOL purchases and to cover operating expenses.
It said Upexi's large SOL holdings and additional purchases could influence future SOL price volatility and market sentiment.

Nasdaq-listed Upexi, which has been strategically buying Solana (SOL), has launched a fundraising effort of up to $23 million. The company plans to use the proceeds to expand its capacity to purchase SOL and to cover operating expenses.

On the 26th (local time), crypto-focused media outlet The Block reported that Upexi is pursuing a private placement including common stock and warrants, targeting up to $23 million. Upexi said it intends to use the net proceeds from the fundraising for operating expenses and to buy SOL.

Upexi was reported to hold more than 2,000,000 SOL as of earlier this year. However, due to a drop in SOL's price, the value of its holdings has fallen by more than $200 million from September's peak. Alongside this, Upexi's share price also declined by about 40% last month, continuing a weak trend.

It is rare for a listed company holding a large amount of SOL to raise capital to secure additional buying power, and the move could affect future SOL price volatility and market sentiment.