Solana treasury firm Upexi secures a $500M line of credit deal

Upexi entered into a $500M line of credit deal with A.G.P./Alliance to facilitate the acquisition of more SOL for its treasury. The company’s CEO, Allan Marshall, said his company now has more ways and flexibility to raise capital for additional SOL purchases.

Upexi announced that it could now sell up to $500M worth of its common stock at $4.00 per share, and at the firm’s sole discretion. Selling the stock will be subject to a few restrictions and closing conditions. A.G.P./Alliance will act as the company’s sole agent.

On July 23, Upexi revealed that it had purchased 83K SOL worth $16.7M to grow its SOL treasury to 1.9M SOL valued at approximately $381M using July 22’s Solana spot price of $200.60.

Marshall said his company and Solana stood to benefit from the progress made by the U.S. regarding crypto legislation. Upexi would continue to purchase and HODL SOL for the well-being of its shareholders. 

Marshall says the equity line strategy had friendly terms

The Upexi boss claimed on July 28 that his firm negotiated the new equity line with zero fees and friendly terms, representing a favorable cost of capital. He emphasized that his company had “a multitude” of capital raising tools that worked in the most “accretive” and “cost-effective manner” to grow its SOL treasury.

Marshall previously said he did not see Solana as a token, but as “the rails” that enabled “internet capital markets.” He added that owning SOL was now akin to the next generation’s infrastructure for financial markets. 

“Solana isn’t a crypto project. It’s a settlement layer for the digital economy. We hold $SOL the same way businesses once adopted AWS. Early. Strategic. Permanent.”

–Allan Marshall, CEO at Upexi

The Upexi CEO previously claimed that his firm was the first public company to raise large-scale equity through private placement for “an altcoin” treasury. He added that the company had closed two “accretive capital raises” in only three months using in-kind convertible notes.

The company’s CSO (Chief Strategy Officer), Brian Rudick, also pointed out that Upexi was well-positioned to offer investors multiple ways to benefit from Solana’s good future performance. He added that his company was the “optimal vehicle” for investors who sought exposure to altcoin digital assets.

Upexi’s SOL strategy pays off

Following the entry into the $500 million line of credit deal, Upexi’s shares (Nasdaq: UPXI) experienced a slight uptick, rising in price from $6.11 to $6.49.

The shares also had a strong trading volume of roughly 3.24 million shares on July 28. Cantor Fitzgerald analysts set a new price target for UPXI shares at $16.00, upgrading the company’s stock from a neutral to an overweight rating.

Recent insider stock buys include 161.94K shares by CEO Marshall and 11K shares by Upexi Director Lawrence Dugan. The purchases indicated increased confidence in the firm’s value by Upexi leadership.

The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.24, and a current ratio of 0.37. It also has a 50-day simple moving average (SMA) of $8.04 and a 200-day SMA of %5.95.

As of July 18, Upexi’s market cap was $402 million, which was equivalent to nearly 1.2x the value of the SOL it held. The company had an assumed “adjusted share count” of $94.2 million, translating to an “adjusted market cap” of about $705 million using July 18’s closing price. The adjusted market cap was equal to 2.1x the adjusted value of SOL it held.

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