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TAMPA, FL - Upexi, Inc. (NASDAQ:UPXI), a consumer products company now expanding into cryptocurrency, has secured approximately $100 million through a private placement of common stock and warrants. According to InvestingPro data, this capital raise comes at a crucial time for the company, which currently operates with a market capitalization of just $3.03 million and has been facing significant cash burn challenges. The placement, led by GSR with contributions from notable crypto venture capital firms and angel investors, is set to close by Monday, subject to customary conditions.
The company disclosed that the capital raised from the sale of 43,859,649 shares, priced at $2.28 each, will primarily fund the establishment of its Solana treasury operations and the accumulation of Solana, a cryptocurrency. About $5.3 million is earmarked for working capital and debt reduction. This allocation towards debt reduction appears timely, as InvestingPro analysis shows the company’s debt-to-equity ratio stands at 2.8x, with current liabilities exceeding liquid assets.
A.G.P./Alliance Global Partners is serving as the sole placement agent for the offering, which is being conducted under an exemption from registration provided by the Securities Act of 1933.
The press release from Upexi, dated April 21, 2025, also contains forward-looking statements regarding the expected use of proceeds and the closing of the offering. These statements are subject to various factors that could cause actual results to differ, and the company does not undertake any obligation to update them.
Investors should note that the securities offered in this private placement may not be sold in the United States except under an effective registration statement or an applicable exemption from registration requirements.
This news is based on a press release statement and provides a snapshot of Upexi’s strategic financial move as it ventures further into the cryptocurrency sector. While InvestingPro analysis suggests the stock is currently undervalued, investors should note that the company’s overall financial health score is rated as WEAK, with 12 additional key insights available to Pro subscribers through the comprehensive Pro Research Report.
In other recent news, Upexi, Inc. has approved an amendment to increase its authorized shares, a decision that received strong shareholder support with 799,813 votes in favor. This amendment could provide Upexi with the flexibility to raise additional capital and issue new shares for various corporate purposes. Concurrently, Upexi’s subsidiary, Quantum Hash, has signed a Letter of Intent to acquire a 2MW facility, marking a significant step into the cryptocurrency sector. The company plans to optimize this facility’s operations to enhance its cryptocurrency portfolio, aiming for a power operation of 10-20 MW by 2025.
Additionally, Upexi has established a digital currency holding company to invest in Bitcoin and other cryptocurrencies, forming subsidiaries ChainBitMiner and QuantumHash to manage these investments. ChainBitMiner will maintain a diversified digital currency portfolio, with Bitcoin comprising 50-70% of its assets. The company’s strategic shift into cryptocurrency is supported by CFO Andrew Norstrud’s confidence in the potential of digital assets and the favorable political climate. Upexi’s move into the digital currency space reflects its broader strategy to diversify and capitalize on emerging market opportunities.
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