Solana treasury company Upexi enters into $500 million line of credit agreement to fund additional SOL token buys

Solana treasury company Upexi (ticker UPXI) has a new $500 million equity line of credit agreement with Alliance Global Partners, according to an announcement on Monday. Upexi can now sell up to $500 million of its common stock to fund general corporate expenses and SOL token purchases.

"The equity line gives Upexi additional means and flexibility to raise capital and increase its Solana position. The equity line was negotiated with zero fees and particularly friendly terms, and represents an attractive cost of capital," Upexi CEO Allan Marshall said in a statement. "Upexi now has a multitude of tools to raise capital in the most cost-effective and accretive manner to build on its growing Solana treasury."

Upexi was one of the first small-cap firms to announce it would add an altcoin like Solana to its balance sheet in a trend that has now swept across the crypto industry.

The firm, which also sells consumer goods like mushroom extracts and dog grooming kits, secured a $100 million private placement in public equity (PIPE) led by the crypto trading and liquidity firm GSR to jumpstart its SOL accumulation strategy in April. It also raised $200 million in a private placement earlier this month.

As of its last disclosure, Upexi held 1.9 million SOL worth over $381 million. The firm works with BitGo for its custodial and over-the-counter trading needs and is considering tokenizing its shares via financial technology firm Superstate. For comparison, last week, Solana holding company DeFi Development Corp disclosed it now holds 999,999 SOL.

SOL is trading at $187.59, down approximately 35% from an all-time high of $293.31, according to The Block’s SOL price page.