Upexi Inc (UPXI) (Q4 2026) Earnings Call Highlights: Massive Solana Treasury Fuels $246 Million ...

Q: With the stock price well below the strike price for the converts, why is management choosing to calculate MNAV as though these will convert? A: CEO Alan Marshall said management is unwilling to speculate on Solana's price, noting SOL went from $234 to $82 in 150 days. He said the company is being consistent in its reporting and that it did the transaction assuming conversion, and it could extend the notes or find a way to convert them, as it did with the Hivemind deal. Brian Ruddick added that running the embedded option in the in-kind notes through an options pricing model like Black-Scholes shows a still-high delta because the stock's volatility is extremely high, suggesting a strong chance they ultimately convert.

Q: On the June private placement, you retired just under $20 million of principal for around $10 million, a meaningful discount to face value. How should we think about the capital allocation framework going forward, and is that repeatable versus the buyback program? A: CEO Alan Marshall highlighted the company's creativity, including the in-kind notes and the Hivemind deal, and said it will keep finding creative ways to create value, whether through another deal, sweetening terms with investors, or extending duration. He said the company doesn't want to act too early and give too much back, and it will continue to raise capital via the ATM in ways it believes are accretive, especially if Solana returns to prior highs or sets new ones.

Q: On the Blueprint delegation, it appears Blueprint is under the Hivemind umbrella. Was that part of the deal, and how much of the treasury will shift to Blueprint? A: CFO Andrew Nordstrom said the company is not shifting more or less to Blueprint but partnering with them, and it also uses several other primary validators that provide very good rates, returning most of the block rewards. CEO Alan Marshall added that the Blueprint deal was worked on with Hivemind for a year and was not directly connected to the convertible deal; deepening the partnership led to the opportunity to increase the reward side.

Q: Could you touch on how you see the Hivemind platform and its uniqueness from an asset management perspective? A: CEO Alan Marshall said the relationship with Hivemind is about expanding into other markets, noting the US market is gray but Hivemind has more access to enter the Asian market. He said the partnership is a way to expand Upexi's footprint outside the US and could lead to deals with other investors in that region. CFO Andrew Nordstrom added that the partnership predated Hivemind's Solana validator and the convertible deal, and the companies work well together and will continue to expand it.

Q: What were the key balance sheet actions taken during the quarter? A: CEO Alan Marshall said the company used ATM proceeds to increase cash to $5.8 million as of June 30, up 65% from the prior quarter end. In June, it extinguished roughly $20 million in debt, and subsequent to quarter end it refinanced its existing credit facility, moving the interest rate from 11.5% to 7.5% and reducing the collateral required for the line.

Q: What progress has been made on expense management? A: CEO Alan Marshall said the company completed its efficiency initiative, including outsourcing manufacturing, warehousing, and logistics operations and reducing full-time employees from 59 a year ago to just 10 today. He expects these efforts to show up in the current quarter ending September 30, with staking revenue more than covering ongoing cash expenses on a go-forward basis.

Q: What were the company's treasury holdings and digital asset revenue for the fiscal year? A: CFO Andrew Nordstrom said that as of June 30, 2026, the company had approximately 2.34 million Solana tokens with a cost basis of about $360.3 million, or an average cost of $154 per token, with about 95% staked. For the year ended June 30, 2026, the treasury generated approximately $17.4 million in digital asset revenues, or about 135,000 Solana tokens, with $195.1 million in unrealized losses and $11.7 million in realized losses.

Q: What drove the year-over-year increase in general and administrative expenses? A: CFO Andrew Nordstrom said G&A expenses were $26.4 million for fiscal 2026 versus $11.9 million in the prior year, reflecting the buildout of the treasury strategy. The increase included a $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.

Q: What drove the net loss for the fiscal year, and what were the share repurchase details? A: CFO Andrew Nordstrom said the net loss for fiscal 2026 was $246.1 million, or $3.87 per share, versus a net loss of $13.7 million, or $1.73 per share, in fiscal 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, the company repurchased approximately 2.9 million shares at an average weighted price of $0.96 per share for total consideration of approximately $2.8 million under its $50 million repurchase program.

Q: What is the status of stockholders' equity and subsequent capital raises? A: CFO Andrew Nordstrom said total stockholders' equity was negative $53.8 million at June 30, 2026, versus positive equity of $90.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .