Upexi (UPXI) shares have experienced a significant decline in value following the announcement of 43.85 million shares available for sale in the open market.
Decline of Upexi Shares
Upexi shares dropped by 60% at the start of trading on Tuesday, June 24. This decline was primarily driven by the announcement regarding the resale of 43.85 million shares, which is equivalent to the company's initial float set in April to fund its plans for establishing a Solana treasury.
Details of the Share Sale
A prospectus filed on Monday indicates that there is still significant offloading to occur, as buyers plan to offload 35.97 million common shares and 7.89 million shares tied to pre-funded warrants. Documents submitted to the U.S. Securities and Exchange Commission (SEC) also noted that Upexi would not receive any proceeds from the sale of shares by the selling stockholders.
Upexi and Solana Outlook
Upexi purchased its first set of Solana coins on April 29, shortly after completing its public fundraising, accumulating a total of 679,677 SOL through additional purchases. Cantor Fitzgerald has set a price target of $16 for Upexi shares, highlighting that Solana holds significant growth potential due to active development and viral meme culture. Analysts expressed that Solana treasury companies deserve higher premiums compared to Bitcoin companies.
The unfolding events surrounding Upexi highlight the complex dynamics within the stock market related to cryptocurrencies and specific investment strategies. While the company's future remains uncertain, interest in Solana-based assets continues to grow.
