Upexi Stock

Good day, and welcome to the Upexi Fiscal Fourth Quarter 2026 Financial Results Conference Call. Please note, this event is being recorded. I would now like to turn the conference over to Valter Pinto, Managing Director of KCSA Strategic Communications. Please go ahead.

Thank you, operator. Good evening, and welcome, everyone, to the Upexi Fiscal Fourth Quarter and Full Year 2026 Financial Results Conference Call. I'm joined today by Allan Marshall, Chief Executive Officer; Andrew Norstrud, Chief Financial Officer; and Brian Rudick, Chief Strategy Officer.

Before we begin, I'm going to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of risks, uncertainties and other factors.

For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I'll refer you to the press release issued this evening and filed with the SEC on Form 8-K as well as the company's reports filed periodically with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by law.

In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States, and they may be different from non-GAAP financial measures used by other companies.

The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings release issued this evening, unless otherwise noted. I'd now like to turn the call over to Upexi's CEO, Allan Marshall.

Thank you, Valter, and welcome, everyone, to our fiscal fourth quarter 2026 earnings conference call. Our fiscal quarter ending June 30, 2026, marks not only the end of our fiscal year, but also the 1-year anniversary of our Solana treasury strategy. As such, I wanted to start with a brief review. We first embarked on our Solana treasury strategy in April 2025 as it became apparent that the U.S. administration and its agencies were turning from a headwind to a tailwind for digital assets.

To bootstrap the strategy, we completed what we believe to be the first large-scale equity raise for an altcoin treasury, raising $100 million and kickstarting the digital asset treasury company trend in the U.S. We followed with a second highly accretive raise in July 2025, taking in an additional $200 million and including, we believe, the first in-kind convertible note, again, demonstrating our innovation within the capital markets.

Turning to the quarter, April, May and June were characterized by a subdued market environment for digital assets and though volatile, Solana generally trended lower throughout the quarter. During this bear market, we focused on what we could control. Management worked to fortify the balance sheet with debt reductions and increasing capital on hand using our ATM. Secondly, we dramatically reduced expenses and streamlined our business to create a very predictable expense profile.

On the balance sheet front, we spent the quarter focused on a number of initiatives to strengthen our financial position. We used some of the ATM proceeds to increase our cash position, which totaled $5.8 million as of June 30, up 65% from the prior quarter end. Separately, in June, we extinguished roughly $20 million in debt. And subsequent to quarter end, we refinanced our existing credit facility, moving the interest rate from 11.5% to 7.5% and reducing the amount of collateral required for the line.

All in, we are in a much stronger position and ready for any market environment that may come. On expense management, we successfully completed our efficiency initiative, which included outsourcing our manufacturing, warehousing and logistics operations and reducing full-time employees from 59 a year ago to just 10 today.

As previously guided, we expect these efforts to show up in the current quarter ending September 30 and specifically for our staking revenue to more than cover our ongoing cash expenses on a go-forward basis. Before concluding, I want to express the fact that this is just our first year. And while the crypto market has not been what we hoped for, we believe it's still in the early innings.

The market will turn up again. And when the bull market returns, which it will, the opportunities to create value will be abundant and the premiums will return. The work we have done this year will amplify the capitalization of those as we execute upon them. With that, I'd like to turn the call over to our Chief Strategy Officer, Brian Rudick.

Thanks, Allan, and hello, everyone. Allan covered our strategic priorities and progress at the company, and I will provide an update on Solana. After all, the main determinant of the success of any treasury company will be the performance of its underlying token. Put simply, Solana remains incredibly well positioned. As a brief review, Solana is a high-performance blockchain and is uniquely positioned as the first second-generation smart contract blockchain.

This gives Solana both best-in-class technology from having come later than early generation blockchains and deep network effects with a plethora of users, developers and applications. While one may think of Solana and smart contract blockchains as a new computing paradigm, Solana is hyper-focused on internet capital markets, where it aims to provide a single liquidity venue for all the world's assets accessible to anyone, anywhere, anytime with just a simple internet connection.

Personally, I like to think of this as reimagining our antiquated global financial infrastructure, which were quite literally built 50-plus years ago, with internet and blockchain-based rails for massive speed and cost advantages and through items like stablecoins, tokenization and AI agents. And with top performance and distribution, Solana is in the catbird seat to lead this revolution.

Metrics agree and show that Solana is winning. Key statistics from last quarter include a 48% increase in stablecoin supply over the prior year, tokenized equities growing to over $420 million from virtually 0 a year ago and with trading volume of over $5 billion, amounting to a 97% market share, the cheapest median transaction fee of any chain at just $0.04, a 53% market share of all blockchain transactions and strong spot ETF inflows compared to large outflows for others.

A big reason for Solana's success and a pivotal factor for the future is Solana's growth with institutions. After all, institutions are likely the fastest way to onboard the masses given their billions of customers, built-in trust, billions of dollars of capital and leading developers.

Notable corporate announcements during the quarter were numerous and occurred in various areas from key players like in payments and stablecoins from SoFi, Western Union, MoneyGram and Mastercard, in tokenization and capital markets from State Street, Amundi, Securitize and Ondo and in infrastructure from Google Cloud, Amazon Web Services, Moody's and Allfunds.

It's early innings, but institutions are reimagining our antiquated financial infrastructure with Solana as the rails, and we are on our way towards internet capital markets. As that continues, Solana and Upexi are well positioned to benefit. And with that, I'll turn the call over to our Chief Financial Officer, Andrew Norstrud, for a review of our financial performance.

Thank you, Brian. As of June 30, 2026, the company had approximately $5.8 million in cash, $165.3 million in Solana and $180.1 million in total assets and $45.6 million in working capital. Turning to the treasury. As of June 30, 2026, the company had approximately 2.34 million Solana tokens, having a cost basis of approximately $360.3 million, equating to an average cost per token of $154 and approximately 95% of these tokens were staked.

For the year ended June 30, 2026, the treasury had approximately $17.4 million in digital asset revenues or approximately earned 135,000 Solana tokens. There was $195.1 million in unrealized losses and $11.7 million in realized losses. For the year ended June 30, 2026, general and administrative expenses were $26.4 million compared to $11.9 million in the prior year.

The increase reflects the build-out of the treasury strategy includes $7 million increase in employee compensation, a $4 million increase in public company expenses, a $1.5 million increase in digital asset treasury fees, a $1.2 million increase in legal fees and a $1.1 million increase in travel. Stock-based compensation was approximately $21.9 million compared to $2.4 million in the prior year. Interest expense was $13.6 million compared to $1.2 million in the prior year.

The increase reflects the increase in short-term and convertible debt obtained to increase the company's treasury. The company has recently negotiated a lower interest rate on the short-term debt to reduce the interest expense. There is a gain on extinguishment of debt of approximately $10.3 million. This reflects the debt reduction on the -- on an acquisition loan and the partial repayment of a convertible debt in the company stock.

Net loss for the fiscal year was $246.1 million or $3.87 per share compared to a net loss of $13.7 million or $1.73 per share in fiscal year 2025. The loss was driven primarily by $195.1 million of unrealized losses on digital assets, $11.7 million of realized losses on digital assets and $21.9 million of stock compensation.

During the year, we repurchased approximately 2.9 million shares of common stock at an average weighted price of $0.96 per share for total consideration of approximately $2.8 million under the $50 million repurchase program of our Board authorized in November of 2025. Subsequent to year-end, we issued approximately 2.5 million shares under the at-the-market program for gross proceeds of approximately $2.5 million.

Total stockholders' equity was negative $53.8 million at June 30, 2026, against positive equity of $90.1 million a year ago. The year-over-year change in stockholders' equity primarily reflects the impact of the unrealized losses on our digital asset treasury and other changes associated with the execution of our treasury strategy.

Management continues to focus on growing Solana Holdings on a per share basis through disciplined capital activities, staking yield and opportunistic purchase of discounted locked tokens while maintaining prudent leverage and risk management. And now I'll turn it back over to Allan for concluding remarks.

Thanks, Andrew. I wanted to close the call by reiterating the progress we have made despite the difficult market environment for crypto. The improvements to our balance sheet and the material reduction to our expenses leave us in a position to capitalize on the inevitable upturn. The company results will improve materially when this happens and all the groundwork we did will be amplified with material improvement in the Solana price. With that, I'll turn it over to the operator for questions.

[Operator Instructions] Our first question is from Brian Kinstlinger with Alliance Global Partners.

Two questions. My first one is, I'm curious if you can discuss the progress and/or ways you can maximize yield and some of the avenues you're exploring to achieve your goals? And then what are your top priorities for Upexi in the current fiscal year? And then I'll ask my second question.

Brian, do you want to take that one? Do you want me to take it? This is Allan Marshall.

Sure. Happy to. Yes, Brian, thanks for the call. I'd say that we slow-played this a bit. We looked at several different opportunities. First, one was quite attractive from both a risk and return perspective. Recall, we have a quite high bar. We want to make sure it's very low risk, and we want to make sure that it can be recurring and also something that investors understand.

What I'd say is some of the opportunities that we were looking at got less attractive during the quarter. And we think that as the crypto market comes back, a lot of those opportunities will improve as well, and we could become much more active there. So not a ton to report there, but we're still actively looking, and that is something that we do want to do.

Great. My second question is, could you explain with the stock price well below the strike price for the converts, why is management choosing to calculate NAV as though these will convert as it seems like they won't, you're trading at 1.4x. And so capital raising would be accretive to SOL per share. I'd love to hear your thought process on those converts.

Sure. Brian, it's Allan Marshall. I mean, I think we spoke about this in the past. I mean, you're speculating on SOL price and asking us to do that. And we just -- I just don't think we're in a position to do that. I mean, in July of 2025 within 150 days, SOL went from $234 to $82. So I mean, we have 281 days assuming we don't either extend them or find a way to convert them like we did with the Hivemind deal.

So anything we do would have a speculation in it. So we reported this. We know what the dates are and to assume that they're not going to convert in 281 days when SOL, like I said, went from $234 to $82 in 150 days, it is an assumption I'm not willing to make. I mean, we did this transaction, assuming they would convert. And if SOL were back at $200, they would convert.

So I guess we could do percentagewise on what we think it is, but it will be speculation. So this is -- we're just being consistent with how we reported it. Like Danny said, we have -- we report on our website. We think we'll be able to either create value with these converts, find a way to convert them, Solana could go above a level that would make them convert.

So you're making one assumption that it's not going to convert, and I just don't know how we could make that -- responsibly make that same, I guess, speculation. If I was good at speculating, I would have sold on my Solana at $234 and bought it back at $82.

Yes. Brian, one thing I would add is if you take the embedded option in our in-kind notes and you run it through any sort of options pricing model like Black-Scholes, that delta is actually still quite high. It's because like the vol on our stock is extremely high, like we would trade with the beta to SOL and SOL is quite volatile, as you know.

So that suggests that there's actually still a really, really darn high chance that they do end up converting. And I think like that volatility is often overlooked. So I wanted to mention that as well.

And just not to go further, but you saw we did the Hivemind deal, we converted early. So even if somehow, we had to possibly reprice them if it was close or something, so maybe there would be some additional dilution. We just can't do -- you can't do a 0. We can't do any all-or-nothing kind of transaction. So like speculating just -- it's just hard for us right now.

Our next question is from Gareth Gacetta with Cantor Fitzgerald.

I wanted to touch on the June private placement. It looks like you were able to retire just under $20 million of principal for around $10 million at the time. So a pretty meaningful discount to face value. I'm wondering how we should think about the capital allocation framework going forward. And maybe if you think that something like you just did would be repeatable or then how you would weigh that versus the buyback program?

On a more general -- it's Allan Marshall. Thanks for the question. On a more general level, I think what we've been able to do over the process of building this treasury or starting the treasury and then being the first to create these in-kind notes, then finding a way to get a deal done with Hivemind to make it beneficial for both sides. I think what I would take from that is just our creativity and our awareness that these are things we have to accomplish this year.

So our process there is like how do we find creative ways to create value, whether it's another deal like Hivemind, whether it's we go back to the investors and sweeten the deal to extend the duration, whether we -- there are plenty of negotiating points, which could benefit both the investor, ourselves and the shareholder. And we're very aware that we need to at least start considering those and possibly execute on them.

We'll go back to like the volatility. It's not unreasonable that we could wake up in June of next year and SOL will be $250. So we just -- we don't want to do something too early to create a situation where we give too much back or I don't think that's the way to really look at it, but that's our thought on that. And so we continue to -- when we decide to raise money on the ATM, the closer it is to NAV, above NAV, we still think -- actually, so we look at it a little differently this year than we did last year.

Like everybody was raising as much money at NAV, put it to work. And it turns out that all of that is kind of incorrect in a certain way. I mean, correct at the moment in time, but when SOL goes from $234 to $65, everything you bought is upside down where you think you'd want to raise as much money as you can if you still believe in the story at $65.

Unfortunately, that's -- we all know that's not how the markets work. So we're trying to blend that. The ATM, we're trying to be creative. We are going to look to continue to raise capital in a way that we think is accretive in the scenario where SOL goes back to both where it's been and maybe to a new high.

Great. That's super helpful. And then maybe just touching on the Blueprint delegation. So it appears that Blueprint is under the umbrella of Hivemind. So I'm just wondering, was that maybe a portion of the deal or what it took to get the deal through? And could you maybe clarify how much of the treasury you're going to shift over to Blueprint?

Not sure I understand the question...

You're talking about the validator with Blueprint. And we're not shifting any more or less. We are partnering with them. They partnered with us in the past. We also have a few other validators that are primary ones that give us very good rates. We get back most of the staking and block rewards, everything else. So that's kind of how we look at it. We don't just favor one, but without looking at the economics of all of them.

Yes, and let me just put, yes, so the Blueprint deal was a deal that Hivemind, Matt and their team and I have been working on for a year. So it wasn't really connected. It was just like if we're going to deepen our partnership, we wanted to -- after that, you're like, hey, we can maybe increase the rewards side. So that's the way we look at that as well.

That makes sense. And I was actually looking into it. It looks like they have a pretty unique platform in general, just from like an asset management perspective. So maybe could you just touch on like how you see that platform and the uniqueness of it?

Yes. Some of the things that we -- are you talking about -- so the relationship with Hivemind we're looking to expand into other -- we think the U.S. market is a great market, but they have more access on their platform to enter the Asian market.

So for us, for Upexi, that partnership was how do we expand our footprint outside of that, and they're great, making a deal with them hopefully would lead to making a deal with other investors in that area of the world. And I'm not -- I'll let Andy jump in, in case the question was more about the validator.

Yes, just with the dashboard and everything else. One of the things that we did with this partnership before they even had a Solana validator. That's kind of why we're putting this partnership together prior to the conversion, prior to even actually the deal being done on the convertible. So it's been a process. We work together very well, and we'll continue to try to expand that as we go forward in many different ways.

There are no further questions at this time. I would like to turn the conference back over to Allan for closing remarks.

Thank you, everybody, for joining the call today. Thanks for the questions. Like I said, I'll just reiterate again, we're looking forward into 2027. We think there's a significant bull market coming. We think we'll be able to execute on those strategies. And I'll close that with thank you again for everyone and look forward to talking to you and listening to you on the next call.

Thank you. This will conclude today's conference. You may disconnect at this time and thank you for your participation.

Good day, and welcome to the Upexi, Inc. Fiscal Third Quarter 2026 Financial Results Conference Call. Please note, this event is being recorded. I would now like to turn the conference over to Valter Pinto, Managing Director at KCSA Strategic Communications. Please go ahead.

Thank you, operator. Good evening, and welcome, everyone, to the Upexi Fiscal Third Quarter 2026 Financial Results Conference Call. I'm joined today by Allan Marshall, Chief Executive Officer; Andrew Norstrud, Chief Financial Officer; and Brian Rudick, Chief Strategy Officer.

Before we begin, I'm going to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995.

Actual results may differ materially due to a variety of risks, uncertainties and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I'll refer you to the press release issued this evening and filed with the SEC on Form 8-K as well as the company's reports filed periodically with the SEC.

The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by law. In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with the accounting principles generally accepted in the United States and they may be different from non-GAAP financial measures used by other companies.

The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings release issued this evening, unless otherwise noted. I'd now like to turn the call over to Upexi's CEO, Allan Marshall.

Thank you, Valter, and welcome, everyone, to our fiscal third quarter 2026 earnings conference call. I'm happy to review our quarterly results and discuss why we're particularly optimistic about the future.

Our fiscal third quarter was characterized by a challenging environment, most notably a continued decline in both the price of Solana and industry multiples. Both had a direct impact on our stock and were the result of a general bear market in crypto. That said, Solana has rebounded from its intra-quarter low of approximately 77% to current 96%, and our multiple is also well off the lows and now sitting above NAV and our fully loaded measure.

Brian will cover our thoughts on the downturn and why we believe prices and valuations can and will improve in the future. And while we, like any treasury company, are heavily impacted by token prices and valuation multiples, we are not simply waiting around for the environment to improve, but rather are taking a proactive approach with several efforts of foot.

One key initiative, which will always be a core component to the company is intelligent capital issuance. Like peers, we generally traded at a discount to NAV during the quarter. We took advantage by buying back approximately 2.5 million common shares for roughly $2 million or $0.80 per share. As a reminder, buying shares below 1x NAV increases our Solana per share. In addition to the buybacks, we remain active on the issuance front, issuing a $36 million in-kind convertible note in January, which materially reduced credit risk given the in-kind nature and will also increase our Solana per share that the notes convert given the conversion price above NAV at the time of the issuance.

Lastly, we completed an approximately $7 million equity plus warrants offering, which was done above NAV and also increased our Solana per share. Despite the difficult environment, we demonstrated an ability to utilize the capital markets to create value with both buybacks and issuances. Second key initiative during the quarter was an intense focus on expenses, including both treasury-related and for our brands business. On the treasury side, expenses have been elevated since the launch of our treasury due to initializing the strategy but will now normalize going forward.

On our brand business, we moved from in-house operations, including manufacturing, warehouse and logistics to outsourced operation with third-party providers. Importantly, our costs are now rightsized and are more closely tied to the revenue generated. All in and assuming a continued 6% to 7% staking yield, we would expect that by July 1, the ongoing cash expenses for operations and interest will be less than the treasury staking revenue. And our goal is to have the lowest expense base of Solana treasury company peers.

The last key initiative during the quarter was yield generation, where we aimed to increase the native 7% Solana staking yield in a low-risk and recurring manner. We continue to examine traditional sources of yield and are working towards a strategy that, if successful, would materially increase the total yield earned on the treasury. We believe the market would pay for the additional yield earned beyond the native staking yield. If the yield is low risk and recurring.

And if we are correct and successful, this would be accretive to our multiple, potentially giving us a sustained premium valuation that we can monetize and perhaps even perpetually enabling the digital asset treasury company capital markets flywheel. With that, I'd like to turn the call over to our Chief Strategy Officer, Brian Rudick.

Thanks, Allan, and hello, everyone. Solana fell from roughly $125 per token to about $83 per token during the quarter for a 33% decline.

This compares to Bitcoin's 22% fall over the same period. We believe the main reason for the decline in the price of Solana during the quarter was the decline in the price of Bitcoin, whether due to investors lumping all of crypto together, combined with Solana's much smaller market cap or to programmatic funds trading digital assets together, Solana tends to trade with a beta of Bitcoin.

And Bitcoin fell materially due to a myriad of reasons, including OG token holder selling, 4-year cycle fears, fallout from the October 10 deleveraging event, precious metals stealing the show, digital assets competing with alternative investment opportunities like AI and more, which pulled Solana lower.

While we believe the biggest determinant of the price of Solana will be the price of Bitcoin over the near term, we see this changing over the next few years. This is primarily because Bitcoin and Solana are 2 completely different constructs with the former store of value or digital gold and the latter a new type of computer and one that is upgrading our antiquated financial infrastructure.

We believe that Solana will increasingly be viewed independently from Bitcoin as investor knowledge increases and judge based on its own underlying fundamentals. Here, Solana fundamentals remain strong. As a reminder, Solana's North Star is what it calls Internet Capital markets, where it aims to have all the world's assets trading on a single liquidity venue accessible 24/7, 365 by anyone with an Internet connection.

While Solana is simply a computer capable of running any application, we see particular opportunity in upgrading our antiquated financial infrastructure, much of which is old, slow and expensive with Internet and blockchain-based rails for massive speed, cost, transparency, composability and capital access benefits.

Specific areas in this financial infrastructure upgrade include stablecoins, which enable near-free and near instant payments to anyone anywhere in the world. Stablecoin transfer volume on Solana totaled $2.1 trillion in the quarter, up 60% over the prior year and leading traditional companies like PayPal, Western Union and Societe Generale are continuing to build and issue stablecoins on Solana due to its top performance in distribution.

Another is tokenization, also known as real-world assets or RWAs, which move off staying assets on chain for massive benefits around asset management and administration, market efficiency and liquidity and financial inclusion and economic growth.

Solana RWAs hit $2.4 billion in 1Q, up from just $317 million a quarter a year ago, including assets from leading issuers such as BlackRock and Franklin Templeton and including tokenized equities where Solana commanded a 99% market share of trading volume in the first quarter.

Finally, Agentic payments, which are financial transactions executed autonomously by AI agents are another large opportunity as many experts believe that one day, the bulk of economic activity will be performed by agents. BI agents cannot simply open up a traditional bank account, but rather need a hyper-performing, credibly neutral and permissionless network on which to transact.

This puts Solana in the catbird seat to capitalize on this nascent but emerging trend tying AI progress with Solana's future success.

Finally, I will conclude by saying that recent price action, in my opinion, creates a compelling opportunity. Bitcoin pulled the price of Solana lower while the fundamentals from stablecoins to tokenization, AI agents and beyond are higher. Over time, prices follow fundamentals and a lower price against improving fundamentals creates an improved risk reward.

Upexi and Solana are well positioned to benefit. And with that, I'll turn the call over to our Chief Financial Officer, Andrew Norstrud, for a review of our financial performance.

Thank you, Brian. As of March 31, the company had approximately $3.5 million in cash, $2.5 million Solana tokens, $1.4 million liquid and the remaining 1 million tokens locked.

During the quarter ended March 31, 2026, taking generated approximately 35,000 tokens or $3.5 million in revenue. We reduced the overall short-term debt by approximately $7.6 million, which included reducing short-term treasury debt by $5.4 million. We reduced the recurring general and administrative expenses compared to the second quarter ended December 31, 2025, and reduced the overall employee count to 10 employees.

During the remainder of the year, management expects to eliminate and/or reduce additional ongoing general and administrative expenses and transition all consumer brands fulfillment to third-party providers. Based on the execution of these plans, the ongoing cash expenses will be less than the ongoing estimated staking revenue.

For the 9 months ended March 31, 2026, the company had digital asset revenue of approximately $14.7 million or approximately 100,000 tokens. Our tokens earned from staking has increased quarterly, and we expect the trend to continue. The direct treasury expenses for the 9 months ended March 31, 2026, were approximately $8.6 million, which includes management fees, custodian fees, service fees and interest.

For the 9 months ended March 31, 2026, the treasury had an unrealized loss on digital assets of approximately $178.8 million, reflective of the Solana price per liquid token of $83.11 and $71.47 per locked token as of March 31, 2026. There were no comparable financial results for the prior period. The company continues to develop the digital asset treasury with a focus on maximizing the return for shareholders and had substantially all tokens stake at March 31, 2026.

For the fiscal third quarter, total revenue was $4.6 million compared to $3.2 million in the prior year quarter. For the 9 months period ended March 31, 2026, total revenue was approximately $21.8 million compared to $11.5 million in the prior year period. This increase reflects the addition of our digital asset treasury business in 2025.

Net loss for the quarter was approximately $109 million or $1.67 per share. $92.3 million related to the unrealized loss on digital assets during the quarter. During the quarter, we increased the total number of Solana tokens held by approximately 189,000, equating to 9% increase or 35% annualized.

Our focus is growing Solana Holdings on a per share basis through disciplined capital activities, taking yield and opportunistic purchases while maintaining prudent leverage and risk management. Operationally, we will continue to align our expenses with that strategy. And now I turn the call back over to Allan for concluding remarks.

Thanks, Andrew. Upexi is operating from a position of strength. We have what we believe is the lowest average Solana purchase price of our larger peers.

We have perhaps the cleanest capital structure, and we have leading trading volumes and a leading valuation. These characteristics put us in an advantaged position to execute on value-creating actions from accretive equity and in-kind convertible notes issuances to accretive M&A and beyond.

Lastly, I want to remind everyone of the 4 items that differentiate Upexi from peers. First, we have a differentiated management team, one who have been extremely successful in the past with a very deep capital markets expertise.

Second, we have a strategy to maximize shareholder value in a risk prudent manner, which we believe positions us well for any market environment and appeals to investors of all kind. Third, we have and will continue to lead innovation and have done several firsts in the industry on the capital markets side. And lastly, we have demonstrated ability to create value for shareholders, executing on our value creation mechanisms to increase adjusted Solana per share by 35% last year and a full 32 percentage points more than investors would have gotten by simply staking Solana natively themselves. With that, I'll turn it over to the operator for questions.

[Operator Instructions] And we'll go first to Brian Kinstlinger with Alliance Global Partners.

In the press release, you highlighted a 9% sequential increase in the Solana count. Can you highlight the underlying yield for Solana that you're generating outside of what was acquired through the capital raise? And then what are the ways you're evaluating to improve that yield?

Andrew, do you want to take that part?

Yes. So during the quarter, the staking yield or the staking revenue was a little bit less than 35,000 tokens that we got. We had the 265,000 convertible debt that we did, and we also sold off 100,000 tokens during the quarter.

So that we had a net of $187,000 increase of tokens. No, I was just going to say and for the staking yield, overall, the total rewards has been down a little bit, but it's just below 7% for the native staking that we're doing.

Great. And then you mentioned in your prepared remarks, accretive M&A. Can you highlight how management is thinking about M&A and what types of assets might be intriguing or go hand-in-hand with your business?

Thanks, Brian. Right now, we're just exploring options on ways where we could increase the overall return on our capital. So the way we look at it is for the steak tokens, it's 7%.

And for the lock tokens, it's closer to double that or just less than double that. So anything we do would have to -- we have to keep in mind that the barrier for us to do something would have to beyond those yields. We've looked at multiple things. But obviously, with just the overall market conditions right now, we're kind of waiting to see what options become available. It's just an expansion of the way we were thinking before.

So before we think strictly buy as much Solana we possible take it. We are still thinking that, but we're also open to looking at opportunities that could increase that yield. Anything we did do, though, would not mean we sold any of our Solana. We would either use some sort of leverage debt or and to do that, it would have to surpass the income we would get from the Solana tokens.

Great. I've got one follow-up. When I look at the balance sheet and the Q, the Q says on the first page, you get 70 million plus shares. You've got $238 million of debt.

And so that's your enterprise value at $455 million and your NAV is $227 million. Why is that not the right way to think about it that you've got an EV to NAV of 1.5x. You guys are talking about having it below 1x.

Brian, do you want to -- Brian or Andy, I'm not sure appropriate on that statement.

Yes. I appreciate the question. Yes, we put out our investor deck and in the appendix, we have 2 ways that we calculate it. It really depends on whether or not our in-kind convertible notes end up converting.

If you run that embedded option through any sort of options pricing calculator, it suggests that they're still more likely than not to convert. But if those do convert, then all that so is ours, and we will have to issue additional shares backing that.

And so on our fully loaded NAV, which is how we like to look at it, we assume that those converts convert and we assume that we sell sole to pay back our line outstanding. And that's what gets you to a roughly 1x mNAV.

The other one, which I think you're referencing is assuming there's no conversion, we have to give back some of that sole, but we also don't have to issue those additional shares, and that's where we're way above NAV.

My personal view is that there's probably a blend of the 2 based on the probability of those in-kind converts converting. Again, we do think that those will convert, which is why we tend to manage the company based on our fully loaded mNAV.

We'll take our next question from Gareth Gacetta with Cantor Fitzgerald.

I was wondering if you could dive in on the cost structure and kind of the path to a self-sustaining treasury. Could you maybe talk about what existing cost actions need to be hit before you get to July 1 milestone? And then maybe once you get there from that base, is the yield strategy, will that kind of provide some operating leverage on top of kind of where you think it will sit today?

Sure. I can open it up and then Andy can get into any details. So the way we're looking at it is we've reduced the headcount. We've outsourced all of the brand businesses.

So they all run at a cost basis where we can manage it much more easily and competitively. And then I think the couple of things we have to do. One is we need to refi a little bit of the debt we have or get some sort of like small appreciation in Solana's price.

That would reduce expenses enough like on the debt profile to bring us really close to cash flow neutral. And then any increase, the way we're thinking about it is any increase in the price of Solana, obviously, that yield becomes very material for us. But do you want -- Andy can break down any more detailed information you want or Brian can.

Yes. So just real quick. I mean, we have some expenses like warehouse leases and everything else that will come -- will be expiring, we will go and be using them in this quarter.

So that's kind of what the July 1 date states so that these leases are gone, all the employees are done, everything is finished with any of the logistics that we were doing before.

Now it will become -- everything will be measured on profitability through the inputs. The second area of it, as Allan started to allude to, is that right now with that short-term treasury debt, we do have $500-plus thousand per month of interest that we're going to be looking at a couple of different ways to reduce that significantly in the next 3 months, which will reduce the overall operating expenses in that treasury significantly.

That right now, even without that, that's where we can just about breakeven, plus or minus a little bit based on the price of sole. But as we start taking care of those in the next 2 months, that will get us well over that. And yes, there will be excess cash from those revenue stakings as we're projecting right now, if everything goes as planned.

Got you. That's really helpful. And maybe I know it's further down the line, but if you do end up generating some cash flows from this staking business, can you talk about maybe how you think about allocating that and returning it to shareholders? Would you maybe buy more sole or lock sole or think about repurchases?

We would look at all like during the quarter, we repurchased shares because they're at 0.8 or even less of NAV. We had the excess cash. So yes, I mean any excess cash we have come in will go into building the treasury position that's sold per share, whether it be repurchasing shares or buying more sole.

Okay. Awesome. And then maybe last one. Could you just kind of double-click on the high-yield strategy and like what portion of the treasury is initially allocated to it and your appetite to maybe allocate more or a greater percentage of it towards that in the future?

Yes. We've been looking at certain strategies. Obviously, the yields on some of these strategies have been moving all over the place over the last 90 days.

I think we would do small initial amount into that, like $25 million or $50 million and then work on that yield if we can get high enough. And once we do refinance the debt, we'll have more availability to put more into a strategy like that should the yield generate the way we think it's going to.

And we're doing all of this off chain. So we're trying not to do anything on chain. We're using more traditional Wall Street instruments.

And this does conclude our question-and-answer session. I would now like to turn the conference back over to Allan Marshall for closing remarks.

I just want to thank everybody for joining the call today. We really appreciate the support. Thanks for the great questions, and we look forward to updating everyone on the year-end. Have a great evening.

And the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good day. Welcome to Upexi Inc. Fiscal Second Quarter 2026 Financial Results Conference Call. Please note this event is being recorded.

I would now like to turn the conference over to Valter Pinto, Managing Director at KCSA Strategic Communications. Please go ahead.

Thank you, operator. Good evening, and welcome, everyone, to the Upexi Fiscal Second Quarter 2026 Financial Results Conference Call. I'm joined today by Allan Marshall, Chief Executive Officer; Andrew Norstrud, Chief Financial Officer; and Brian Rudick, Chief Strategy Officer.

Before we begin, I'm going to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of risks, uncertainties and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I'll refer you to the press release issued this evening and filed with the SEC on Form 8-K as well as the company's reports filed periodically with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by law.

In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States, and they may be different from non-GAAP financial measures used by other companies. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings release issued this evening, unless otherwise noted.

I'd now like to turn the call over to Upexi's CEO, Allan Marshall.

Thank you, Valter, and welcome to our second quarter 2026 earnings conference call. I'm happy to review our results and discuss why despite the difficult market backdrop, I remain extremely optimistic for the future and why we remain well positioned to win. The market presented 2 key challenges for us last quarter with both declining asset prices and treasury company multiple compression. This was reflected in our quarterly results as well as in our stock price.

I'll discuss each in succession. On the former, the price of Solana fell 40% during the quarter, and it has fallen a further 31% since the quarter end. While there have been many reasons cited, including rising geopolitical risks, precious metal stealing a show and many more, the fact of the matter is the biggest determinant of any treasury company's success has and always will be the performance of its underlying token. Thus, we are not immune and Solana's performance had a big impact on the company.

That said, I remain encouraged for 3 key reasons. The first is given their nascency, such volatility is normal with digital assets. And Solana often exhibits large movements in both directions along a significant uptrend over time. Second, as Brian will discuss in more detail, the underlying fundamentals for Solana continue to improve as global finance moves on chain. Here, I'm particularly optimistic because over time, price follows fundamentals and improving fundamentals against the falling price is a recipe for greater potential upside. Lastly, as a treasury company, we have multiple mechanisms not available to native tokens or ETFs that can create value for shareholders like accretive issuance and discounted lock token purchases. We have in the past and aim to, in the future, increase our Solana per share to help offset any decline in token price or to add to any increase in price in an upmarket.

So overall, between the volatility being expected, a positive view for potential Solana price appreciation and our ability to increase Solana per share, we remain positive about the opportunity and continue to believe 2026 will be a strong year for Solana and Upexi. The second key challenge during the quarter was general multiple compression in the treasury space. We believe this was due to the law of supply and demand. With over 200 treasury companies, it's not hard to see why many are trading at discounts to net asset value. Despite this, I remain optimistic for so many reasons. First, I believe the subsector will work through some of its oversupply, either through M&A or from treasury companies selling their digital assets to close the discounts. Secondly, I believe there are fundamental reasons why Upexi can and should trade at a premium valuation in constructive market environments.

As discussed in the past, these have to do with our multiple value accrual mechanisms, which have value. Third, as we have publicly stated, we are working to increase the yield that we generate on a treasury in a risk prudent and recurring fashion. Should we be successful, we believe this would increase our multiple, which in turn would accelerate the model and differentiate Upexi from others. Lastly, I believe we're likely to see multiple expansion in a bull market. This has been the case historically with public companies and there are large catalysts like the potential passage of U.S. digital asset legislation that could quickly bring this to fruition.

In closing, while we have had a turbulent start to 2026, we remain positive about the future and the company has developed a strong strategic plan to: one, increase yield; two, hedge positions us the maturing option market; and lastly, capitalize on opportunities the volatility creates. All of these things should lead to significant growth in yield, cash flow and stability for 2026 and beyond.

With that, I'd like to turn the call over to our Chief Strategy Officer, Brian Rudick.

Thanks, Allan, and hello, everyone. Despite the challenges during the quarter, the underlying fundamentals for both Solana and Upexi remain solid. As a brief reminder, Solana's North Star is what it calls Internet Capital Markets, where it aims to upgrade our antiquated global financial infrastructure. Existing constructs like ACH and the credit card issuer networks were created 50-plus years ago and are slow and expensive, while even fintech is simply a front-end wrapper on this antiquated infrastructure. But we can now use Internet and blockchain-based rails to upgrade this antiquated infrastructure for huge speed and cost savings in addition to other benefits around transparency, composability, investor access and many more.

Solana continued to progress throughout the quarter with increased development, adoption and usage. The Spot Solana ETF launched and have seen over $850 million of net inflows since. Stablecoin supply reached a new record, tokenized equities are booming, non-native tokens like MON and STRK began trading on Solana and the Firedancer client launched on Mainnet. And importantly, key announcements were made by various leading institutions, including Western Union, Visa, Coinbase, Revolut, Robinhood, Kalshi and SoFi. In short, Solana demonstrated strong momentum and particularly so related to its Internet capital markets goal. The opportunity to revolutionize finance is massive, and Solana is at its very heart.

We remained active with the capital markets, highlighted by the private placement of up to $19 million in common stock and warrants and subsequent to quarter end, an additional $7 million common stock and warrants offering as well as a $36 million in-kind convertible note issuance. Both were done at a premium to our fully loaded NAV, meaning they increased adjusted Solana per share. We also became self-eligible during the quarter and quickly filed our shelf registration statement on Form S-3 with the SEC, which is now effective. And we announced a $50 million share repurchase program, adding another important tool to manage capital.

On the visibility front, we participated in over 10 conferences and events during the quarter, including Solana Breakpoint, Maxim, Cantor, Rothchild, ROTH, Clear Street and others. These resulted in myriad presentations and panels as well as in over 100 investor meetings where we continue to evangelize both Solana and Upexi. And we continue to appear in many news articles and podcasts throughout the quarter. Put simply, Solana is executing on its Internet capital markets road map and Upexi is adding additional value for shareholders.

And with that, I'd like to turn the call over to our Chief Financial Officer, Andrew Norstrud, for a review of our financial performance.

Thank you, Brian. As of December 31, the company had approximately $1.6 million in cash and 2.17 million Solana tokens. 1.32 million of those tokens were liquid, 850,000 of those tokens were locked. For the 6 months ended December 31, 2025, the company had digital asset revenue of approximately $11.2 million or approximately 65,700 tokens added. We expect to increase the number of tokens we hold in our treasury each quarter and also increase the quarterly revenue from the treasury. The direct treasury expenses for the 6 months ended December 31, 2025, were approximately $6 million, which included management fees, custodial fees, service fees and interest.

For the 6 months ended December 31, 2025, the treasury had an unrealized loss on digital assets of approximately $86.4 million, reflective of the Solana price per token of $124.48 at December 31, 2025. There are no comparable financial information for the prior period as the digital treasury was started in April of 2025. The company continues to develop the digital asset treasury with a focus on maximizing the return for shareholders and had approximately 95% of all tokens stake at December 31, 2025.

For the second quarter, total revenue was approximately $8.1 million, an increase of approximately $4 million or just over 100% compared to $4 million in the prior year quarter. For the 6 months period ended December 31, 2025, total revenue was $17.3 million compared to $8.4 million in the prior period. This increase reflects the addition of digital asset treasury business in 2025. The net loss for the quarter was approximately $178.9 million or approximately $2.94 per share. This loss was primarily driven by the $164.5 million of unrealized losses on digital assets, reflecting noncash quarter end fair value adjustments as well as approximately $8.3 million of stock compensation expense. Excluding these fair value changes, the underlying treasury is performing -- performance has remained strong.

We increased the number of Solana tokens in our treasury during the quarter by approximately 106,000 tokens. The increase was driven by spot token purchases, partially offset by a decline in the lock Solana through a swap transaction. We continue to strengthen our balance sheet in light of the changing market environment. Due primarily to accretive equity raises previously mentioned, we currently have approximately $9.7 million of cash on hand. Management continues to focus on growing Solana's holdings on a per share basis through disciplined capital activities, staking yield and opportunistic purchases of discounted lot tokens while maintaining prudent leverage and risk management.

And now I'll turn it back over to Allan for concluding remarks.

Thanks, Andrew. I wanted to conclude the call by highlighting our top priorities. While we, as always, remain hyper-focused on external visibility and intelligent capital issuance, there are 2 key initiatives worth highlighting. The first is a continued focus on accretive growth. We aim to raise capital above NAV to increase our digital assets per share. We will continue to look for ways to raise equity capital in the most cost-effective manner available. Additionally, we will also continue to issue in-kind convertible notes at a premium to NAV. Such notes offer differentiated risk reward for investors while significantly reducing credit risk for both parties.

Our second key focus going forward is to increase the yield on the treasury in a low-risk fashion, which we believe would enhance our valuation. If we are successful, we should trade at a sustainable premium, which itself would accelerate the capital markets flywheel. In closing, we've remained active even in a significant downtrend, completing both a capital raise and an in-kind convert, both at slightly or above NAV. While this has not helped stem the downturn or the stock performance, we believe it will accelerate the upturn when Solana and crypto begin to recover from the current drawdown.

With that, I'll turn it over to the operator for questions.

[Operator Instructions] Our first question is from Brian Kinstlinger with Alliance Global Partners.

With the recent pressure on Solana, coupled with your high conviction, is there any change in terms of your capital raising strategy? Are you more willing to raise capital at a lower premium and NAV so to reduce your average purchase price? And then is the goal to use the ATM as much as possible to lower your cost of capital?

I think I'll jump in here, Brian, this is Allan Marshall. I don't think we've changed our perspective at all on this. We have one of the lowest costs on Solana tokens. We were able to, like we do 2 capital raises subsequent to the quarter end with the one with Hivemind and then the cash one not too long ago, just over NAV. So we don't want to panic here and -- or I shouldn't say panic, but make decisions based on just daily movement. We continue to bring that cost down. We'll definitely be open to raising capital as that gap to NAV closes again, but we're still going to look to raise above NAV or at NAV as often as possible. The ATM, obviously, is the lowest cost. Now that we have all the tools in place going forward, we'll certainly be willing to use that, but we'll also be willing to sell Solana to buy stock back if that gap gets too wide as well.

Well, to that point, you've got $9.7 million of cash. How do you weigh buying SOL versus keeping a reserve?

I think the one thing that this downturn has taught everybody is to keep a reserve, right? Like the volatility has been even -- I think even from the crypto would be considered pretty volatile in such a short period of time, especially into what everyone consider tailwinds. So right now, we're going to just be prudent. We do think we're getting close to washing out at the bottom here. Hopefully, it will bounce around for a while and recover. So cash reserves are okay. What we've done is just kind of shore up the balance sheet, make sure that we're set.

The other thing with the whole market, and I said it in our call is the options market and everything are getting much more liquid. So you're going to have a lot more opportunity to hedge these positions or to partially hedge these positions. We tried to do it earlier in the year. We're just unable to get a liquid enough market to do the size we want it. Looking back, we wish we could have. But with all of the new kind of attention to it, all of the ETFs launching, liquidity is coming. So everything is maturing, and I think all of that's going to still bring a lot of opportunity both to raise capital again to hedge any movements to sit on cash. Right now, we're just in general, like playing it as close to the best we can, but we're still looking to grow.

My last question is you've alluded to your high-yield strategy plans. I think you had a press release a while back on that, too. Any more you can share? We've seen a number of that lend their digital coins. They've generated a much higher return. I guess I'm curious, is there a lower appetite or would be partners for this type of transaction given the pressure in cryptocurrency? Or are there still a number of parties that have a high degree of interest in something imminent?

A couple of things. One is, like I want to see how that yield, like we understand how they're looping those tokens and everything. I don't believe that creates the yield that they're talking about. So I want to see how that's I'm not sure it's presented in an apples-to-apples presentation. So we want to see that. However, we are currently going through the exercise to pinpoint like the risk-adjusted high-yield strategies we're looking for opportunities. While we do believe there's a time and a place for on-chain yield, today is not it for us. We're still not willing to go on chain. We're still waiting for that regulatory clarity. The on-chain comes with additional smart contract liquidation risks. We don't want to enter into any of that, like you said, with that volatility, and those yields can also compress.

So what we're looking at is a more familiar and really easily understood by traditional kind of investors. We're looking at something that's more familiar in the markets. We're going to try to launch that here into the second quarter, so April forward. And at that point, we'll probably give more clarity on how we're doing that. But it's not on change. That's all I can tell you for now.

[Operator Instructions] Our next question is from Brett Knoblauch with Cantor Fitzgerald.

I might have missed this, but is there an updated SOL balance following the direct offering and the placement of the convertible notes? In the press release, you said around $2.4 million. Is that the number that we should be using?

That's the public number we have so far. It's really close to that number. Nothing much has changed.

Perfect. Appreciate it. And then just to maybe double-click on the generating additional yield outside of staking. Can you maybe elaborate in what forms of activities you would be participating in? Obviously, you said nothing on chain, but any additional color on how or where you would generate additional yield to staking?

Yes, I'll let Brian step in here. But yes, what I will say is we will definitely elaborate on that going forward. But right now, we're trying to get it set up the way we want to get it set up. But I'll let Brian step in and elaborate a little bit there.

Yes. Thanks, Allan, and thanks, Brett. Yes, as Allan mentioned, we're still in the exploratory phase. We think that we've identified specifically one strategy that can generate high yield in a low-risk way. But we're waiting until we're a bit further along in that path before we reveal too many details. The one thing I'd say is like we've got really 2 key things that we're focused on. One is making sure that this is recurring and number two, making sure that this is low risk. And so when we think about it internally, our hurdle rate is that low to mid-teens that we can get on the locked and so we bought locked Solana at a 15% discount. When you think of it like OID and you put that 15% discount into the yield equivalent, we still get the 7% staking yield on that. And so it translates to an all-in low teens yield. And so that -- and we view that as low risk as well. So that is kind of the hurdle rate of what we're looking to do. And everything that we do will be compared against that. But we will give more information in the future as we continue to progress there.

There are no more further questions. I would like to turn the conference back over to Allan Marshall for closing remarks.

We want to thank everybody for joining the call. I know it's been a tough quarter for everyone at crypto. We -- like I said, during the call, we do think the future is still bright. We think we're on the right path. And thank you for the great questions, and we look forward to updating you guys during the quarter and look forward to the next conference call. Thank you very much.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good day, and welcome to the Upexi Fiscal First Quarter 2026 Financial Results Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Valter Pinto, Managing Director at KCSA Strategic Communications. Please go ahead.

Thank you, operator. Good evening, and welcome, everyone, to the Upexi Fiscal First Quarter 2026 Financial Results Conference Call. I'm joined today by Allan Marshall, Chief Executive Officer; Andrew Norstrud, Chief Financial Officer; and Brian Rudick, Chief Strategy Officer.

Before we begin, I'm going to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of risks, uncertainties and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I refer you to the press release issued this evening and filed with the SEC on Form 8-K, as well as the company's reports filed periodically with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by law.

In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States, and they may be different from non-GAAP financial measures used by other companies. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings release issued this evening, unless otherwise noted.

I'd now like to turn the call over to Upexi's CEO, Allan Marshall.

Thank you, Valter, and welcome, everyone, to our first quarter 2026 earnings conference call. I couldn't be more excited to hold our first earnings call since adopting the Solana Treasury strategy. It has been truly transformational for the company, and as such, I wanted to comment on our past since inception.

As you know, we primarily were a consumer Amazon brand owner. As the Amazon business became increasingly more difficult we started to think about the best ways to create shareholder value going forward. After a thorough analysis of many options, we made a strategic decision to invest our time and resources into digital assets. This was due to 2 reasons. The first was a new found openness towards crypto in the U.S., mainly due to the change in administration and its various regulatory bodies. Put simply, the U.S. administration went from a headwind to a tailwind for digital assets and which we believe will accelerate innovation, adoption and ultimately affect prices moving upwards. Second was a greater appreciation for the value MicroStrategies has created for shareholders. Indeed, it has been the best performing stock in the U.S. since adopting a Bitcoin treasury strategy in 2020. And more importantly, it has more than doubled the return of Bitcoin with only minimal leverage, meaning its capital markets activities are creating tremendous value for shareholders.

We first publicly announced a pivot towards digital assets in February. And as we honed our strategy, we settled in on one built around Solana. We'll cover the rationale in more detail later in the call, but the decision on -- to focus on Solana was simple. From an asset perspective, we believe strongly that Solana has the best chance to be the end game winning high-performance blockchain and particularly so as the new rails for global finance. Second, from a treasury perspective, Solana offers additional ways to create value for shareholders via activities like staking and purchasing of discounted locked SOL. Our plan was simple: close on a large scale capital raise, employ and improved the proven capital markets playbook from MicroStrategies where issuing equity above book value is by definition accretive. Then innovate on MicroStrategy's model by staking our Solana to generate yield to turn the treasury into a cash flowing asset and also buy on locked discounted SOL for built-in shareholder gains.

We did just that in April, successfully completing a $100 million equity private placement in what we believe was the first large-scale equity pipe for an Altcoin strategy. We followed it up with a $200 million raise in July, which included an innovative in-kind convertible note issuance, offering with significant benefits for both investors and the company. And again, we believe that to be an industry first. Each time we deploy the funds into spot and locked SOL at attractive entry prices, sticking nearly all of it to generate cash flow. The company currently owns $2.1 million SOL valued in excess of $327 million. While raising capital and deploying the capital in a systematic way, we remain hyper focused on both external visibility and intelligent capital issuance.

Success in raising capital and deploying it are only part of a successful public strategy. We have put forth an enormous effort to build our online and traditional finance following and to educate the market on our vision and the investment opportunity. We are proud to have been quoted in over 50 news articles since launching the strategy, participating in multiple leading podcasts each month, establishing an advisory committee with Arthur Hayes, Jon Najarian and SOL Big Brain, and attended or are scheduled to attend over 20 mostly traditional finance-oriented conferences and have conducted hundreds of individual investor meetings. As previously stated, we have remained steadfast on utilizing the capital markets to create value for shareholders. Notably, our July raise not only materially increased our Solana per share, but also led to multiple expansion as we demonstrated our ability to raise funds in an accretive fashion.

On the financial side, our Consumer Brand business continues to perform as expected. Most importantly, our stacking revenue is uniquely providing a huge boost to company revenue. Our fiscal Q1, we generated over $6 million in digital asset revenue, and we are currently adding over $75,000 a day. As we look ahead, Q2 will benefit from having all of 2.1 million SOL stake for the future quarter.

I'll now turn the call over to Brian Rudick, Chief Strategy Officer.

Thanks, Allan, and hello, everyone. The biggest determinant of any treasury company's performance will be that of its underlying token. Here, we are supremely confident in and feel very fortunate to be underpinned by Solana. We chose Solana for 3 reasons. First, it's the first second-generation smart contract blockchain. This means that it benefits from having best-in-class technology like parallel transaction processing like modern computers do, but also from strong network effects having launched in 2020.

Second, Solana has a vibrant and growing ecosystem of users, developers and decentralized applications. You can really build anything on Solana from decentralized finance to deep into stable coins tokenization, gaming, art, social AI agents, meme coins and more.

And third, Solana is already putting up the best metrics of any blockchain, often beating out all of them combined. These metrics include daily active users, decentralized application revenues and decentralized exchange volumes. But what gets me so excited is the potential for Solana to revolutionize the world's antiquated financial infrastructure. Indeed, current financial rails, for example, ACH and the credit card issuer networks were created 50-plus years ago, and even fintech is a front-end wrapper that uses these antiquated rails on the back end. However, blockchain technology allows us to entirely reimagine these antiquated rails and to utilize things like stable coins and tokenization to remove rent extracting intermediaries and democratize value exchange.

Tangibly, this means huge cost savings and speed benefits, not to mention improvements in settlement times, transparency, composability, investor access and much more. And Solana is purpose built for exactly this in what it calls Internet capital markets. Its goal is to have all of the world's assets trading on the same liquidity venue, accessible 24/7 to anyone with the Internet connection. And institutions are taking note from PayPal to Societe Generale, Fiserv, Western Union and others.

Leading financial companies are building stable coins on Solana due to its industry-leading speed, cost and reliability. Tokenization infrastructure firms like Securitize, Superstate and R3 are bringing real-world assets on chain from leading asset managers like BlackRock, VanEck, Apollo, Franklin Templeton, Hamilton Lane and others. And Visa is using Solana for its USBC stable coin merchant settlement program for cross-border payments. Finance is moving on to the blockchain, and it's happening on Solana. We are in the very early innings, but this transformation is absolutely happening and with Solana front and center.

Lastly, I'd point out that we have what I consider to be the mother of all catalysts that can drastically accelerate this transformation in the U.S. passing comprehensive digital asset legislation. Indeed, a lack of clear rules in the U.S. has, in my opinion, always been the biggest item holding crypto back. Institutions have thus far only dabbled in digital assets and blockchain technology and have been loath to materially adopt the technology when it comes with heightened legal and regulatory risks.

However, if and when the U.S. passes this market structure bill called the Clarity Act, which is currently being worked on in the Senate with high bipartisan support, institutions will be forced to jump in, in a big way. Otherwise, they will be disintermediated by those who do. And it's big pack and big finance that have billions of customers built in trust, billions of dollars for investment in the top developers. Imagine Google adding a built-in crypto wallet to its Chrome browser or Amazon integrating stable coin payments.

We just may be on the precipice of onboarding the masses, leading to a step change in digital asset innovation, adoption and usage. Solana and Upexi are well positioned to benefit.

And with that, I'll turn it over to our Chief Financial Officer, Andrew Norstrud.

Thank you, Brian. Total revenue increased by $4.9 million to $9.2 million for the quarter. Net income was $66.7 million for the quarter, and earnings per share was $1.21 for the quarter. All of these increases were related to the Solana treasury performance. Solana tokens increased during the quarter by approximately 1,322,000 tokens. This increase was from both liquid and locked Solana purchases and swaps with approximately $181 million in noncash Solana purchases. The company has purchased approximately 2,029,100 tokens through direct purchases and swap transactions. The average price of Solana tokens purchased is $155.57, 31,347 of the quarter's increased tokens were from the $6.1 million in staking revenue generated from the treasury. In total, the treasury has generated approximately $7.1 million and 37,742 Solana tokens since inception. Unrealized gains of approximately $78 million was recognized during the quarter and had significant impact to the reported financials.

Management understands the volatility of the digital assets and we'll continue to focus on growing the number of Solana tokens held in the treasury in a way that will maximize the return for our shareholders. And now I'll turn it the call back over to Allan for concluding remarks.

Thanks, Andrew. Upexi is a truly differentiated treasury company with many advantages. We have a differentiated management team that is more traditional finance rather than crypto oriented. I founded what is now New York Stock Exchange listed XPO Logistics, and Andrew was our CFO at XPO and has been a public CFO for decades. Brian spent years at the most prestigious hedge funds managing hundreds of millions of dollars. This is relevant because at the end of the day, this is a capital market exercise, and we believe our experience will be paramount to our future success. We led the innovation to create what is now the DAT industry and look to innovate in the future to stay ahead of peers. With the first large-scale equity raise for altcoin treasury and the first in-kind convertible note, we have set Upexi on trajectory for a very bright future.

We do several things to be more in line with traditional finance to differentiate our strategy. First, we only take on prudent amount of credit risk leverage and limit it to 20%. We do not partake an aggressive on chain trading that increased our contract, liquidation and legal regulatory risk. Lastly, we only use qualified custodians and top validators and diversify amongst them for operational risk management and best practices. We believe this strategy will not only position us well for any market environment, but also will appeal to crypto and traditional investors alike.

Finally, and again, quite uniquely, we have a proven ability to create value. We have increased adjusted SOL per share in SOL terms by 47% and in U.S. dollar terms by 82%. As a reminder, the former measures our ability to capture our 3 value accrual mechanisms and accretive issuances, staking income and purchases of discount on locked SOL tokens, while the latter also incorporates the price of Solana. We are in an advantaged position to win. We are underpinned by an end game winning asset with nearly unlimited upside and offering additional value accrual mechanisms in staking and discount on locked purchases.

We have a differentiated management team with best-in-class capital markets expertise. We have a risk prudent strategy, positioning us for any market environment and resonating with investors of all kinds. Lastly, we have a proven track record of innovation and shareholder value creation.

With that, I'll turn it over to the operator for Q&A.

[Operator Instructions] Our first question comes from the line of Brian Kinstlinger with Alliance Global Partners.

Great. The company has added a few high-profile crypto investors to the advisory committee, like you mentioned. So can you talk about the impact we're having on the company? And any recommendations the committee is making as we think about differentiation of DAT, for example, outside of SOL accumulation and yield. Is the committee recommending or is management thinking about ancillary revenue generating businesses? And if so, can you share any details.

Thanks, Brian. So two parts. One is, so far, it's been a short amount of time we've been working with them, but we've gotten a lot of good feedback both on how we're presenting ourselves to the market, their opinions on SOL, the overall opinion on how we're positioning the company to communicate to both TEFI, I mean, traditional finance and also the crypto community. No one right now is talking about anything outside of Solana and revenue-generating outside of that, like we still believe as we get some clarity here going forward on regulatory changes that Solana is in line for in all of crypto or all of the top cryptos in line for a pretty big move.

So we're going to continue with the strategy we have, like we've said to our investors and stay focused. We will try to maximize yield. And we have had internal discussions, but none of that's public yet. We're going to do the right thing to increase our yield for our investors as quickly as possible, and we always open to input from the people we bring on board and also the outside community we talk to.

Great. I have 2 more questions. The first 1 is, given you didn't have a full quarter of SOL holdings, can you tell us what your effective yield has been? And is there any way to enhance that? Or are you maximizing that already? Maybe any information on the yield would help?

I can let Andrew answer that question. I will say, as we've been -- because we've been building it step by step, not everything is staked as quickly -- well, it's staked quickly, but as quickly as possible. And just moving things around and getting things set in like the risk-prudent factor, the way we manage it, Also, we're always working with different -- we've been working with different validators. We've been increasing the yield as it goes. So I think this is probably the baseline for us and it's going to go higher from here and especially since it's mostly all staked now that we have on board. So I can turn it over to Andrew, if he has a rate, but I'm not sure we've been able to blend it exactly just because of all the steps along the way, but Andrew?

Yes, you're not going to be able to blend it yet. Next quarter will be a lot better. But just to add to Allan's note, we've got a program that we put in place to look at the various different validators to have them compete against each other on any fees or anything else that's being done. We've got some great partners with us on that side and continue to look at how to increase that yield, plus we've had some other opportunities to try and increase the yield higher than just the standard staking yield. So more and more of that will come out this next quarter as we kind of have everything under control and have some of these programs in place. So -- unfortunately, I can't give you an exact yield, but going forward, you'll be able to calculate a lot better next quarter.

But to close that off, Brian, we definitely think this is kind of like the baseline for us, like this is the low end and it will continue to rise from here.

Okay. The last one, several of the DATs are trading below 1x, steep discounts, in fact. Thankfully Upexi is not. But I think investors are interested in management, in general, of DAT companies plans with capital markets, should Upexi face a deep discount. What -- how would you address that?

We have plenty. I think Brian and I and Andrew have always said when -- if for some reason, we do trade at a discount, it's -- the model is just on top. Like we still believe that inevitably crypto yield, the crypto increases and the yield and us maximizing that and also keeping company expenses as low as possible and continuing to get better at that. We'll warrant a premium. So at those moments in time, I mean, the company does have plenty of options, right? It can turn its staking revenue into a buyback. It could actually buy back shares. There's plenty of ways to offset that. But what I want to stress like this is a longer game, right? Like we don't want to think about it as 1 quarter at a time. We really do believe even if there is some sort of crypto pullback, it's just a pause. And I'll let Brian chime in here a little bit because him and I have talked about this over -- with multiple investors and I'm sure he would like to add in something on this one.

Yes. Thank you, Allan, and thank you, Brian. Yes, plus 1 on the capital market side of the equation, just being a bit on pause. I think that there's no better example than MicroStrategy. So 2024, it increased Bitcoin per share by 74%. In 2021, it was something like 47%. And then when it got into a bear market, and it did trade at a discount to NAV it still was able to increase Bitcoin per share, but it was something like mid-single digits. So it was just a bit on pause. Like Allan mentioned, there are things that we can do to compress any discount should 1 come to fruition. And importantly, we actually don't have to sell our SOL to do that.

You could actually borrow some funds to repurchase your shares to compress any sort of discount. And then the last thing I'd say is like we make an 8% staking yield on almost our full treasury. And then on top of that, a lot of the SOL that we've bought is locked form, which when you put that discount into any sort of yield equivalent. It's nearly doubling that 8% staking yield. So all in, we're making this really nice return on our treasury and so while we are waiting to issue capital in this accretive fashion, we were able to increase our SOL per share at a very nice pace.

[Operator Instructions] There are no further questions at this time. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.