Upexi (UPXI) investor relations material

Strategy and capital markets

• Transition to a digital-asset strategy announced in February; raised $100m in April and a further $200m in July, including an in-kind convertible note issuance.

• Strategy targets moderate leverage, qualified custodians and diversified providers; avoids leveraged liquid-staking strategies that could put treasury assets at risk.

• Last year, three value-accrual mechanisms lifted SOL per share by 35%, versus 3% more SOL for a hypothetical investor buying and staking SOL directly.

• Accretive equity issuance, private placements and convertible notes are intended to raise crypto per share when shares trade above underlying asset value.

Treasury and value creation

• Treasury of 2.3m SOL; staking yield of 5%-6%, with management guiding that staking revenue will cover cash expenses on a go-forward basis.

• 36% of the book was locked SOL, generally bought at a 14%-15% discount; locked tokens still earn staking yield and unlock monthly through January 2028.

• Management described the locked-token discount as built-in gains as tokens move toward spot value; staking and discounted purchases were presented as additions to the capital-markets model.

• Treasury-company valuations have historically traded at premiums in crypto bull markets and discounts in bear markets; SOL performance remains the primary driver of results.

Solana and industry outlook

• Solana was described as a high-performance smart-contract blockchain with 5m daily active users and parallel transaction processing.

• Management highlighted stablecoins, tokenized assets and AI-agent payments as use cases; Solana was said to lead with 97% of spot tokenized-equity trading volume.

• Adoption by financial and technology institutions was expected to develop over the next three to five years, with clearer regulation supporting broader corporate use of blockchain rails.

• Management characterized crypto adoption as a secular expansion, while noting prices may follow sentiment in the near term and fundamentals over time.