Shares of Upexi dropped 8.16% on Tuesday after the company reported a significantly wider net loss of $109 million for its fiscal third quarter, largely due to declining values across its cryptocurrency holdings.
According to a regulatory filing released Tuesday, the company recorded $92.3 million in unrealized losses tied to digital assets. The losses overshadowed a 46% year-over-year increase in revenue, which climbed to $4.6 million, helped by growth in crypto staking income.
During the earnings call, CEO Allan Marshall acknowledged the difficult market backdrop facing both Upexi and the broader crypto industry. He said the company has focused on strengthening its financial position through measures including share buybacks and a convertible note offering aimed at raising additional capital.
Marshall said the quarter was heavily impacted by ongoing weakness in Solana prices and declining valuation multiples across the sector, both of which weighed directly on Upexi’s stock performance amid the wider crypto bear market.
CEO Allan Marshall said Upexi is taking an active approach to navigating the crypto downturn rather than simply waiting for market conditions to recover.
“While we, like any treasury company, are heavily impacted by token prices and valuation multiples, we are not simply waiting around for the environment to improve,” Marshall said, adding that the company is pursuing several initiatives aimed at strengthening its position.
Upexi’s holdings of Solana increased 9% during the quarter, reaching 2.5 million SOL tokens worth more than $238 million as of March 31, according to the company’s earnings report.
That makes Upexi the second-largest corporate holder of Solana behind Forward Industries, which reportedly holds more than 7 million SOL, according to CoinGecko.
Before shifting its strategy, Upexi primarily operated as a consumer products and e-commerce company. The firm publicly announced its pivot toward becoming a Solana-focused treasury company in April 2025.
Marshall also said he expects Solana to eventually trade more independently from Bitcoin as investors develop a deeper understanding of the network’s own fundamentals.
“While we believe the biggest determinant of the price of Solana will be the price of Bitcoin over the near term, we see this changing over the next few years,” he said.
“This is primarily because Bitcoin and Solana are two completely different constructs, with the former a store of value or digital gold, and the latter a new type of computer, and one that is upgrading our antiquated financial infrastructure.”
Forward Industries, currently the largest corporate holder of Solana, is set to report its next earnings results on Thursday.
In its previous earnings release in February, the company reported revenue growth from $4.6 million to $21.4 million year over year. According to the company, the sharp increase was primarily fueled by staking-related revenue.
