Core Viewpoint - Upexi, Inc. is actively participating in multiple investor conferences in December 2025 to enhance investor engagement and showcase its focus on Solana and digital assets [1][2][3] Group 1: Investor Conferences - Upexi will attend the Benchmark's 14th Annual Discovery 1x1 Investor Conference on December 4, 2025, in New York City, with Chief Strategy Officer Brian Rudick representing the company [2] - The company will also participate in the Solana Breakpoint 2025 conference from December 11-13, 2025, in Abu Dhabi, where CEO Allan Marshall and Chief Strategy Officer Brian Rudick will be present for a panel discussion on December 12, 2025 [2] - A virtual webinar titled Webull CCS Investment Crypto/DAT will take place on December 17, 2025, featuring a presentation by Brian Rudick [3] Group 2: Company Overview - Upexi, Inc. is a leading digital asset treasury company focused on acquiring and holding Solana (SOL), currently holding over two million SOL [4] - The company employs three key value accrual mechanisms: intelligent capital issuance, staking, and discounted locked token purchases, aiming for disciplined and accretive growth [4] - Upexi also operates as a brand owner in the development, manufacturing, and distribution of consumer products, appealing to a diverse range of investors [4]

Core Viewpoint - Upexi, Inc. has successfully closed a private placement offering, raising approximately $10 million, with potential additional proceeds of around $13 million from warrant exercises, aimed at enhancing its digital asset treasury strategy focused on Solana [1][5]. Group 1: Offering Details - The private placement involved 3,289,474 shares of common stock and warrants to purchase an equal number of shares at a combined purchase price of $3.04 [1]. - The total gross proceeds from the offering are approximately $10 million, with the potential for an additional $13 million from the exercise of warrants [1]. - The net proceeds will be utilized for working capital, general corporate purposes, and the company's internally managed SOL maximum return strategy [1]. Group 2: Company Overview - Upexi, Inc. is a leading digital asset treasury company focused on acquiring and holding Solana (SOL) in a disciplined manner [5]. - The company employs three key value accrual mechanisms: intelligent capital issuance, staking, and discounted locked token purchases [5]. - Upexi currently holds over two million SOL and also specializes in the development, manufacturing, and distribution of consumer products [5].

Core Points - Upexi (UPXI), a Nasdaq-listed company, announced a private placement priced at up to $23 million, including common stock and warrants [1] - The transaction will provide approximately $10 million in immediate financing, with total proceeds reaching $23 million if all warrants are exercised [1] - The offering price is set at $3.04 per share and corresponding warrant, with a warrant exercise price of $4.00, which can be exercised immediately and is valid for four years [1] - The funds raised will be used for general corporate purposes, working capital, and to expand Solana holdings [1]

Core Points - Upexi, Inc. has entered into a securities purchase agreement with an institutional investor for the sale of 3,289,474 shares of common stock and warrants to purchase an equal number of shares at a combined purchase price of $3.04, which is a 1.3x premium to the Company's NAV [1][2] - The offering is expected to close around December 1, 2025, with gross proceeds of approximately $10 million and potential additional proceeds of up to $13 million from the exercise of the warrants [2] - The funds will be used for working capital, general corporate purposes, and a strategy focused on maximizing returns from Solana (SOL) [2][6] Company Overview - Upexi, Inc. is a digital asset treasury company focused on acquiring and holding Solana (SOL) while also being involved in the development, manufacturing, and distribution of consumer products [6] - The company currently holds over two million SOL and employs strategies such as intelligent capital issuance, staking, and discounted locked token purchases to enhance value [6]

Core Viewpoint - Upexi has announced a stock buyback program of up to $50 million to enhance shareholder value amid declining stock prices and market conditions [1][2]. Company Summary - The board of Upexi approved a buyback program that allows the company to repurchase shares on the open market, providing flexibility based on market conditions and liquidity [1]. - CEO Allan Marshall stated that the buyback will be executed opportunistically without compromising the company's growth investments or treasury strength [1]. Industry Context - Upexi's decision aligns with a trend among digital asset treasury firms that are engaging in share repurchases as their stock prices have significantly decreased due to reduced investor interest [2]. - The market capitalization of some digital asset treasury firms is now below the value of the cryptocurrencies they hold, leading to the rationale that buybacks could be beneficial [2]. Stock Performance - Upexi's stock has fallen over 50% since early October and nearly 90% from its peak in April, with a 4.4% decline noted on Thursday amid a broader downturn in cryptocurrency prices [3]. - The current price of Solana (SOL) is approximately $150, reflecting a nearly 30% decrease over the past month and a 20% decline year-to-date [3]. - Upexi holds 2.1 million SOL, valued at around $319 million [3].

Core Viewpoint - Upexi, Inc. has authorized a share repurchase program of up to $50 million to enhance shareholder value and demonstrate confidence in its long-term growth strategy [1][2][3]. Group 1: Share Repurchase Program - The share repurchase program allows Upexi to buy back its common stock in the open market, depending on market conditions and other factors [2]. - The company plans to execute share repurchases opportunistically, aligning with its disciplined capital allocation approach [2]. - The timing, manner, price, and amount of repurchases will be at management's discretion, and the program can be suspended or discontinued at any time [3]. Group 2: Company Overview - Upexi, Inc. is a digital asset treasury company focused on acquiring and holding Solana (SOL), aiming for disciplined and accretive growth [4]. - The company currently holds over two million SOL and employs mechanisms such as intelligent capital issuance, staking, and discounted locked token purchases to enhance value [4]. - Upexi also operates as a brand owner in the development, manufacturing, and distribution of consumer products [4].

Core Insights - Upexi Inc. reported a 183% year-on-year profit surge, primarily attributed to Solana (SOL) staking income, which has become a significant growth driver for the company [1][4][7] Financial Performance - Gross profit reached $8.3 million, reflecting a 183% increase compared to the same quarter last year, largely due to digital asset revenue of $6.1 million from SOL staking [7] - Net income for the quarter was $66.7 million, a significant turnaround from a net loss of $1.6 million in the same quarter of the previous year [7] - Total revenue was reported at $9.2 million, up from $4.4 million in the quarter ended September 30, 2024 [7] Market Position - Upexi's digital asset division is now the company's largest growth engine, with expectations to improve yield generation further [4] - The company is trading at a premium to net asset value (NAV), indicating a strong market position despite broader concerns about the crypto treasury model [4][5] - Upexi's average cost basis for acquiring SOL tokens is approximately $154-$157, which is lower than that of competing Solana treasury companies, who entered the market at around $220-$230 [8]

Financial Performance - Digital Asset Revenue for the quarter was approximately $6.1 million, contributing to total revenue of $9.2 million, up from $4.4 million in the same quarter last year[7] - Gross Profit totaled $8.3 million, representing a 183% increase year-over-year, primarily driven by the addition of Digital Asset Revenue[7] - Net Income increased to $66.7 million, or $1.21 per share, compared to a net loss of $1.6 million, or ($1.55) per share, for the same quarter last year[7] - The Company reported approximately $78 million in unrealized gains on its Solana treasury, significantly impacting net income[7] Cash and Investments - Cash and Cash Equivalents were $2.2 million as of September 30, 2025[7] - Upexi closed a $200 million concurrent private placement of common stock and convertible notes to support its growth strategy[8] - The Company announced a $500 million equity line agreement with A.G.P. to accelerate the growth of its Solana treasury strategy[8] - Upexi currently holds over two million SOL, positioning itself as a leading digital asset treasury company[10] Strategic Initiatives - The Company established the Upexi Advisory Committee, adding notable members to enhance strategic direction[8] - Upexi's operational strategy includes holding cryptocurrency Solana directly on its balance sheet, generating meaningful yield[3]

Treasury Strategy - The company has shifted its treasury strategy to hold digital currency assets, primarily focusing on Solana (SOL), aiming for higher yields on excess cash [158]. - Approximately 95% of the company's Solana treasury is currently staked, with plans to maintain or increase this percentage in the future [161]. - The treasury strategy includes intelligent capital markets issuance to purchase and hold more Solana, potentially benefiting shareholders as Solana's price rises [160]. - The company maintains a certain amount of liquid SOL and cash to meet current obligations, ensuring liquidity management [166]. - The treasury strategy aims to turn the treasury into a productive asset through staking, enhancing shareholder value [160]. - The company evaluates its treasury operations bi-weekly to adjust the allocation of SOL in the staking program [163]. - The Company has approximately $253,000,000 in treasury value at BitGo, based on the SOL price of $202.51 per token [192]. - The Company maintains more than 98% of its SOL treasury in cold wallets [195]. - The Company has not reduced its treasury or sold any of its SOL staking rewards to date [186]. - The Company is in the process of onboarding a third qualified custodian as part of its risk management process [198]. Staking and Yield - The staking program utilizes multiple validators to maximize yield and reduce risk, with regular evaluations of validator performance [167]. - Staking rewards are distributed based on the proportion of stake relative to the total active stake in the network, funded by inflationary issuance and transaction fees [183]. - The Solana staking yield is currently at 4.3%, down from an initial 8.0%, and will decrease by 15% every epoch-year until reaching a long-term floor of 1.5% [200]. - There are currently 27.2 million locked SOL, representing 6.7% of the total SOL supply [200]. Financial Performance - Revenue declined by approximately $1.2 million, or 28%, compared to the same period last year [211]. - Digital asset revenue increased by approximately $6.1 million as the Company began investments in digital assets [212]. - Cost of revenue decreased by approximately $0.5 million, or 33%, resulting in a gross margin of approximately 69.7% [213]. - General and administrative expenses increased approximately $7.9 million, or 577%, primarily due to the shift to holding digital assets [215]. - Unrealized gain on digital assets increased by approximately $78.0 million due to price changes on SOL [216]. Cash Flows and Assets - Net cash flows used in operating activities was $9,780,221 for the three months ended September 30, 2025, compared to $1,974,592 for the same period in 2024 [220]. - Net cash flows used in investing activities was approximately $30.3 million for the three months ended September 30, 2025, compared to $5.8 million provided in the same period in 2024 [221]. - Net cash flows provided by financing activities was approximately $39.4 million for the three months ended September 30, 2025, compared to $2.7 million used in the same period in 2024 [222]. - Current assets increased to $220,341,167 as of September 30, 2025, compared to $56,778,043 as of June 30, 2025 [218]. - The Company estimates sufficient working capital to fund operations and meet debt obligations over the next twelve months [223]. Solana Network Insights - The Solana network's transaction fees are fixed at 0.000005 SOL per transaction, plus a variable fee based on computation resources used [179]. - The company does not hedge its SOL and has no plans to do so in the future, focusing solely on Solana as a digital asset [158]. - Solana is the 1 ecosystem for new developers, growing 83% in 2024, indicating strong future growth potential [203]. Fees and Charges - The Company pays BitGo a monthly digital asset storage fee based on the market value of the assets in storage, plus $500 [189]. - The Asset Manager will charge an asset-based fee of 1.75% per annum on the assets under management [205]. - The Company issued warrants to the Asset Manager to purchase 2,192,982 shares of Common Stock at various exercise prices ranging from $2.28 to $5.70 per share [206].

Financial Data and Key Metrics Changes - Total revenue increased by $4.9 million to $9.2 million for the quarter, with net income at $66.7 million and earnings per share at $1.21, all attributed to the performance of the Solana treasury [16] - The company recognized unrealized gains of approximately $78 million during the quarter, significantly impacting reported financials [16] Business Line Data and Key Metrics Changes - The consumer brand business continues to perform as expected, while digital asset revenue generated over $6 million in fiscal Q1, with current daily additions exceeding $75,000 [10][16] - The treasury has generated approximately $7.1 million and 37,742 Solana tokens since inception, with staking revenue contributing $6.1 million to the quarter's increase [16] Market Data and Key Metrics Changes - The company currently owns 2.1 million SOL valued in excess of $327 million, with an average purchase price of $155.57 per token [8][16] - The company has purchased approximately 2,029,100 tokens through direct purchases and swap transactions [16] Company Strategy and Development Direction - The company has adopted a Solana Treasury strategy, pivoting from being a consumer Amazon brand owner to investing in digital assets due to favorable regulatory changes in the U.S. [4][5] - The strategy includes large-scale capital raises and innovative financial instruments, such as a $100 million equity private placement and a $200 million raise with an in-kind convertible note issuance [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Solana as a high-performance blockchain and highlighted its potential to revolutionize financial infrastructure [11][12] - The company is optimistic about the passing of comprehensive digital asset legislation in the U.S., which could significantly accelerate institutional adoption of digital assets [14][15] Other Important Information - The management team emphasizes a risk-prudent strategy, limiting credit risk leverage to 20% and avoiding aggressive on-chain trading [19] - The company has increased adjusted SOL per share in SOL terms by 47% and in U.S. dollar terms by 82% [20] Q&A Session Summary Question: Impact of high-profile crypto investors on the company - Management noted that feedback from the advisory committee has been positive, focusing on market presentation and positioning, with no current plans for revenue generation outside of Solana [23][24] Question: Effective yield and enhancement opportunities - Management indicated that yield has been built step by step, with expectations for improvement in the next quarter as more assets are staked [26][28] Question: Addressing potential deep discounts in trading - Management stated that if the company trades at a discount, it has options such as share buybacks and maintaining low expenses to warrant a premium [31][34]