'Solana reserves' Upexi stock plunges… fallout from $1 billion fundraising

U.S. Nasdaq-listed Upexi, a company that stockpiles Solana (SOL), saw its stock plunge. The move appears to be due to its announcement that it plans to raise up to $1 billion.

According to Cointelegraph on the 24th (local time), Upexi's stock fell about 7.5% on the previous day (23rd). Cointelegraph reported, "The stock fell after Upexi disclosed that it would newly raise up to $1 billion to increase its Solana holdings and seek additional Solana-related business opportunities."

Earlier, on the previous day (23rd), Upexi filed with the U.S. Securities and Exchange Commission (SEC) an application to issue securities worth up to $1 billion. In its filing, Upexi said the funds raised through the securities issuance would be used for general corporate purposes such as capital expenditures, research and development (R&D), and acquisitions/investments. Cointelegraph said, "Upexi is focusing on a strategy to maximize its Solana holdings and stake them to receive additional token rewards."

According to CoinGecko, Upexi's Solana holdings were estimated at about 2.1 million tokens as of that day. They are valued at $262.3 million (about 380 billion won). By holdings alone, it ranks fourth among companies that stockpile Solana.