Solana treasury stock Upexi collapsed by 60%, and early coin hoarding institutions began to take profits?

On the evening of June 24, the US-listed Solana treasury company Upexi (stock code: UPXI) saw its stock price drop by over 60% during trading, ultimately closing at $3.97. It is reported that Upexi's sudden crash was due to investors registering 43.85 million shares for resale, which is equivalent to the company's initial circulating shares in April. Ironically, on June 17, Wall Street brokerage Cantor rated the Solana treasury companies DeFi Development, Upexi, and Sol Strategies, giving them all a buy rating. The brokerage set a target price of $16 for Upexi. Led by analyst Thomas Shinske, they wrote: "We believe that Sol financial companies are betting on the future of finance on-chain, with Solana being the preferred chain." Cantor noted that Solana's biggest competitor is the Ethereum blockchain, but its technology is significantly better on various metrics compared to its larger peer, making Solana more meaningful for financial assets than Ether. Upexi and its predecessor Grove, Inc. is a company focused on developing, manufacturing, and distributing consumer goods, with innovative brands including Cure Mushrooms, LuckyTail, and the Praxanthine energy gummy series, selling through e-commerce platforms like Amazon and Shopify. Until April 18, 2025, its market value was only $3 million and was in a state of continuous net loss, nearly facing delisting. On April 21, Upexi announced $100 million in financing led by the famous crypto market maker GSR, with approximately 95% to be used for establishing and operating Solana treasury reserves. This news directly stimulated Upexi's stock price to surge over 600% intraday. Upexi's strategy was to "All In SOL", making it the most similar to a Solana version of MicroStrategy among all Sol treasury companies. Upexi has signed securities purchase agreements with some investors to issue and sell 43.86 million common shares or pre-subscription warrants at $2.28 per share, expecting to raise up to $100 million. The plan is to use about $5.3 million for operating capital and debt repayment, with the remaining funds to establish the company's Solana treasury system and increase Solana asset holdings. "Coming quickly and leaving quickly," in June, Upexi's investors registered 43.85 million shares for resale, exactly the initial circulating shares from April. Monday's prospectus showed that the original buyers now wish to sell 35.97 million common shares and 7.89 million shares linked to prepaid warrants. The document noted that if warrant holders exercise their rights, Upexi would only receive $7,890, and selling shares would not generate any revenue. Upexi's filing with the US Securities and Exchange Commission stated: "We will not sell any common shares in this offering, nor will we receive any proceeds from the selling shareholders." While Upexi is struggling, other Sol treasury companies rated "buy" by Cantor are not faring well either. The earliest SOL accumulator, Sol Strategies, remains relatively stable, initially expanding through external acquisitions and later transitioning to growth through fundraising and natural accumulation from Sol infrastructure. Currently, its price has dropped 60.8% from its historical high. DeFi Development, which transformed from a real estate company, has seen its current price drop 53.6% from its historical high and experienced a 20.88% plunge yesterday. The "Ethereum MicroStrategy" SharpLink Gaming is also underperforming. On June 13, SharpLink Gaming submitted an S-3ASR registration statement to the US SEC, authorizing the potential resale of up to 58.70 million PIPE financing-related shares. This meant over 100 PIPE investors could sell their holdings at will. Panic quickly spread, with SharpLink Gaming dropping over 70% intraday. Despite ConsenSys CEO Joseph Lubin clarifying that this document was a routine post-PIPE registration process to "pre-register shares for potential resale" and did not represent actual selling, the subsequent stock performance sadly proved that SharpLink Gaming's previous 40x surge was just a flash in the pan. Although ETH and SOL's "MicroStrategies" have failed, new Altcoin treasury companies are still rushing in with FOMO. On June 24, following market rumors about multiple BNB strategic reserve companies being formed, Nano Labs Ltd (stock code: NA) announced signing convertible note subscription agreements with multiple investors to issue convertible notes totaling $500 million. The notes have a 360-day term, with principal non-interest-bearing before maturity, and holders can choose to convert to the company's Class A common shares at an initial conversion price of $20 per share. Nano Labs plans to initially acquire $1 billion worth of BNB through this financing and private placement, targeting long-term holding of 5% to 10% of BNB's total circulating supply. Upon this news, Nano Labs' stock immediately surged 65% pre-market. On June 23, Eyenovia (stock code: EYEN) announced signing a securities purchase agreement for a $50 million PIPE offering to institutional qualified investors to establish its Hype reserve plan. The company's 2024 full-year revenue was only $56,000, with a net loss of $50 million and debt exceeding $10 million. With cash flow dried up and new product trial failures, multiple factors threaten Eyenovia's delisting. The strategy of transforming into a Hype reserve gave Eyenovia a "lifeline", with its stock price soaring 134% on the same day after the news. As the US crypto environment gradually relaxes, the wave of crypto stocks is far from subsiding. However, the continued low performance of early "on-chain MicroStrategy" players has already sounded an alarm for latecomers.