Upexi shares dropped 8.16% on Tuesday after the company reported a much larger fiscal third-quarter loss tied mainly to the declining value of its Solana holdings.
The company posted a net loss of $109.3 million for the quarter, compared with a loss of $3.8 million during the same period last year.
According to Upexi, most of the loss came from about $92.3 million in unrealized digital asset losses linked to its Solana treasury. The company said these were non-cash accounting losses caused by quarter-end price changes in its crypto holdings.
Despite the larger loss, revenue increased to around $4.6 million, up from $3.2 million a year earlier.
Upexi also continued expanding its Solana reserves. The company said it added around 189,000 SOL during the quarter, increasing its total treasury holdings to roughly 2.5 million SOL tokens.
The firm added that staking activity helped generate around $3.5 million in digital asset revenue during the reporting period.
As of March 31, Upexi held approximately $3.5 million in cash alongside its Solana treasury. Around 1.4 million SOL tokens were liquid, while nearly 1 million remained locked.
CEO Allan Marshall said the quarter was difficult for crypto treasury companies because of weaker crypto prices and lower market valuations across the sector.
He noted that the company has continued taking steps to strengthen its financial position, including repurchasing around 2.9 million shares, reducing short-term debt by $7.6 million, and completing a $36 million convertible note deal backed by locked Solana tokens.
Although Upexi is now one of the largest publicly traded Solana treasury firms, it still trails Forward Industries, which reportedly holds more than 7 million SOL tokens.
The latest results highlight how crypto treasury companies remain highly exposed to market volatility, especially firms heavily tied to large cryptocurrency holdings like Solana.
