Upexi Revenue Doubles but Records $179 Million Loss, SOL Decline Drags Digital Asset Treasury Performance

Odaily News Nasdaq-listed company and Solana digital asset treasury firm Upexi announced its financial results for the second quarter of the fiscal year ending December 31. The company's revenue for the quarter reached $8.1 million, doubling from approximately $4 million in the same period last year. However, due to the decline in SOL price, the company recorded a net loss of approximately $179 million.

The financial report shows that the digital asset business has become the primary revenue source, contributing $5.1 million for the quarter, primarily from SOL staking rewards, surpassing the $2.9 million revenue from the consumer brand business. The company's gross profit increased by 126% year-over-year to $6.7 million.

However, the loss mainly stemmed from approximately $164.5 million in unrealized paper losses, which are non-cash accounting impacts resulting from the mark-to-market adjustment of crypto assets. Management stated that the underlying treasury business continues to generate cash flow through staking rewards and plans to explore more yield strategies and hedging tools to mitigate the impact of asset price volatility.

As of the end of the quarter, Upexi held over 2.17 million SOL, with approximately 95% already participating in staking; the company indicated that its current holding size is close to 2.4 million SOL.