Upexi to to inject its Solana treasury with $200 million

Consumer products company Upexi has announced plans to bolster its Solana treasury. According to the update, the firm intends to raise $200 million to fund business operations as well as its further Solana purchases. The fund is expected to come from two separate financing vehicles, per the company’s statement. Upexi is a brand that specializes in the development, manufacturing, and distribution of consumer products, diversifying into the cryptocurrency industry. The company took to blogging platform X to announce how the funds would be raised. “Today we announced a blockbuster deal with a $150m in kind convertible note led by @BigBrainVC and a $50m equity private placement,” the firm said . Upexi also added that net proceeds will be used to purchase more Solana. Upexi set to raise $200 million to purchase SOL According to its statement, Upexi mentioned that the $150 million convertible note offering would be collateralized via locked, spot SOL provided by the purchasers of its convertible notes, which is expected to have a two-year maturity and a 2% interest rate that is payable every quarter. After the completion of the note offering, the tokens are expected to be added to the SOL treasury maintained by the company. The firm had previously announced its intention to build a digital assets treasury filled with Solana in April, raising $100 million to back its purchase at the time. The company said about 95% of the raised funds would be used to set up, fill, and operate its Solana-based treasury reserve, marking its diversification into the crypto space. Following the announcement, Upexi shares skyrocketed, finishing the day at $9.89, up by 335%. The share previously rose as high as 22%, marking its highest price in a year. With its latest purchase, Upexi will push its treasury balance to 1.65 million SOL worth around $270 million. With the firm holding such an amount of tokens, it now boasts twice the amount of Solana as another prominent, publicly traded Solana treasury, DeFi Development Corporation (DFDV). Shares of Upexi are yet to react as much as they did when the news of the first raise broke, with the stock only seeing a 7.8% rise to hit $5.39 after the announcement was made. The stock, UPXI, is down about 58% in the last month after its first jump, which saw it peak at $22.57, according to data from Google Finance. Nevertheless, the shares are still up by 53% year-to-date. Solana is also on the rise, with the asset trading at $162.47, a drop of 0.92% in the past day. SOL experienced a price rise on Friday, with Bitcoin also hitting a new all-time high at the same time. Meanwhile, Grayscale has called out the Securities and Exchange Commission (SEC) for pausing the debut of its exchange-traded funds that hold several assets including Solana. The company alleged that its investors are suffering harm as a result of the SEC’s decision. The company asked the SEC to allow its Digital Large Cap Fund to begin trading. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now

Source: Cryptopolitan