Upexi, Inc. Raises $50 Million in Private Equity Offering to Support Cryptocurrency Plans

Upexi, Inc. Secures $50 Million in Private Equity to Bolster Cryptocurrency Initiatives

Closing of Private Placement Amid Market Challenges

Upexi, Inc. (NASDAQ: UPXI), a company known for its development, manufacturing, and distribution of consumer products with expanding interests in the cryptocurrency sector, has successfully closed a private placement equity offering, raising approximately $50 million in gross proceeds. The offering involved the sale of 12,457,186 shares of common stock to accredited investors, qualified purchasers, institutional investors, as well as participation from the company’s CEO, Allan Marshall, and Director, Gene Salkind. Shares were sold at $4.00 each, with management and board members purchasing at a premium price of $4.94 per share. This capital raise comes at a time when the cryptocurrency market is experiencing significant volatility and regulatory uncertainty.

Strategic Use of Proceeds and Market Context

Upexi intends to deploy the funds raised to cover placement agent fees and other offering-related expenses, support general working capital requirements, and further its Solana treasury strategy. The company is also anticipating the closing of a previously announced $150 million convertible notes offering, expected around July 16, 2025, which will be exchanged for Solana tokens. This dual approach underscores Upexi’s commitment to deepening its involvement in the cryptocurrency space despite the challenges posed by increased regulatory scrutiny and intense competition from established crypto firms.

Investor sentiment toward the offering has been mixed, reflecting broader market skepticism about the unpredictable nature of cryptocurrencies. Nonetheless, the surge in cryptocurrency-related stocks and IPOs highlights the dynamic and competitive environment in which Upexi is positioning itself. A.G.P./Alliance Global Partners served as the sole placement agent for the transaction.

Regulatory and Legal Considerations

The securities offered in this private placement were sold in a transaction exempt from registration under the Securities Act of 1933 and applicable state securities laws. Consequently, these shares cannot be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption. Upexi emphasized that this announcement does not constitute an offer to sell or a solicitation to buy these securities in any jurisdiction where such activities would be unlawful prior to proper registration or qualification.