Upexi (NASDAQ:UPXI) executives emphasized a long-term focus on growing Solana holdings per share and improving treasury yield during the company’s fiscal second-quarter 2026 earnings call, even as the quarter was overshadowed by steep declines in Solana’s price and broader valuation compression across digital-asset treasury companies.
Management frames quarter around token volatility and “multiple compression”
Chief Executive Officer Allan Marshall said the quarter was defined by two primary market challenges: falling digital-asset prices and declining valuation multiples for treasury-focused companies. Marshall noted Solana fell 40% during the quarter and was down an additional 31% since quarter end, which he said materially impacted results and Upexi’s stock.
On valuation, Marshall pointed to what he described as supply-and-demand dynamics across a crowded field of more than 200 treasury companies, with many trading at discounts to net asset value (NAV). He said Upexi expects the subsector to “work through” oversupply via potential M&A or companies selling digital assets to narrow discounts, and he argued Upexi could warrant a premium valuation in constructive environments if it succeeds in adding recurring, risk-prudent yield on its treasury.
Solana ecosystem updates and capital markets activity
Chief Strategy Officer Brian Rudick highlighted continued development and adoption on Solana during the quarter, framing the blockchain’s long-term goal as “internet capital markets.” He cited several milestones and indicators of activity, including:
- Launch of spot Solana ETFs, which he said have seen more than $850 million of net inflows since launch
- Stablecoin supply reaching a new record
- Growth in tokenized equities activity
- Non-native tokens such as MON and STRK beginning to trade on Solana
- The Firedancer client launching on mainnet
- Announcements involving institutions including Western Union, Visa, Coinbase, Revolut, Kalshi, and SoFi
Rudick also reviewed Upexi’s financing and capital markets steps. He said the company completed a private placement of up to $19 million in common stock and warrants, and after quarter end completed an additional $7 million common stock and warrants offering, as well as a $36 million in-kind convertible note issuance. He said these financings were completed at a premium to the company’s fully loaded NAV and therefore increased adjusted Solana per share.
In addition, Rudick said Upexi became shelf-eligible during the quarter and filed a Form S-3 shelf registration statement that is now effective. He also noted the company announced a $50 million share repurchase program and increased investor outreach through conference participation and more than 100 investor meetings.
Financial results: revenue growth alongside large unrealized losses
Chief Financial Officer Andrew Norstrud said that as of December 31, the company had approximately $1.6 million in cash and 2.17 million Solana tokens, including 1.32 million liquid tokens and 850,000 locked tokens. He added that about 95% of tokens were staked at December 31.
For the six months ended December 31, 2025, Norstrud reported digital asset revenue of approximately $11.2 million, which he equated to roughly 65,700 tokens added. Direct treasury expenses for the same period were approximately $6 million, including management, custodial and service fees, as well as interest.
Norstrud said the treasury recorded an unrealized loss on digital assets of approximately $86.4 million for the six-month period, reflecting a Solana price of $124.48 at December 31, 2025. He noted there was no comparable prior-period financial information because the digital treasury began in April 2025.
For the fiscal second quarter, the company reported total revenue of approximately $8.1 million, up about $4 million, or just over 100%, compared with $4 million in the prior-year quarter. For the six-month period, total revenue was $17.3 million, compared with $8.4 million in the prior period, which Norstrud attributed to the addition of the digital asset treasury business in 2025.
Upexi reported a net loss for the quarter of approximately $178.9 million, or $2.94 per share. Norstrud said the loss was primarily driven by $164.5 million of unrealized losses on digital assets tied to non-cash quarter-end fair value adjustments, as well as about $8.3 million of stock compensation expense. He added that, excluding fair value changes, “the underlying treasury performance has remained strong.”
Norstrud said the company increased its Solana holdings during the quarter by about 106,000 tokens, driven by spot purchases but partially offset by a decline in locked Solana through a swap transaction. He also said the company strengthened its balance sheet and, primarily due to accretive equity raises, had approximately $9.7 million of cash on hand at the time of the call.
Strategy: accretive growth, hedging tools, and yield initiatives
Marshall reiterated two priorities: raising capital above NAV (or at NAV) to grow digital assets per share—using equity and in-kind convertible notes—and increasing treasury yield in what he described as a low-risk fashion to potentially support a higher valuation multiple.
In the question-and-answer session, Marshall said the company’s capital raising approach had not changed due to recent Solana price pressure, and that management continues to avoid reacting to “daily movement.” He said Upexi would look to raise capital as the gap to NAV closes, with a preference for issuing above NAV or at NAV, and described the at-the-market (ATM) facility as a low-cost tool. He also said the company could consider selling Solana to buy back stock if the discount to NAV becomes too wide.
Asked about balancing cash versus additional Solana purchases, Marshall said the recent drawdown underscored the need to keep reserves and remain prudent, adding that maturing options market liquidity could create better opportunities to hedge positions than were available earlier.
On incremental yield beyond staking, management said it is evaluating strategies but is not pursuing on-chain yield strategies at this time, citing regulatory clarity and risks such as smart contract and liquidation risk. Marshall said the company is pursuing something more familiar to traditional investors and expected more clarity after work progresses in the quarter beginning April. Rudick added that Upexi is focused on recurring and low-risk yield, and cited the company’s “hurdle rate” as comparable to the low- to mid-teens yield it associates with buying locked Solana at a discount combined with staking.
Later in Q&A, Marshall confirmed that a publicly stated Solana balance of roughly 2.4 million tokens was “really close,” with no material change. He closed the call by acknowledging a difficult quarter for the crypto market while reiterating confidence in the company’s long-term direction.
About Upexi (NASDAQ:UPXI)
Upexi (NASDAQ: UPXI) is a full-service digital consultancy that partners with brands to design, develop, and deploy digital products and marketing strategies. The company’s expertise spans user experience and interface design, custom software engineering, and data-driven marketing services. By integrating research, creative design, and technical execution, Upexi helps clients accelerate product development cycles and optimize their digital presence.
The firm serves a diverse, global clientele across sectors such as e-commerce, software-as-a-service (SaaS), healthcare, and finance.
