Q4 2026 Upexi Inc Earnings Call

September 17, 2026

Speaker #1: Good day, and welcome to Upexi, Incorporated 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.

Speaker #1: Please go ahead.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Valter Pinto: 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 would now like to turn the call over to Upexi CEO, Allan Marshall.

Speaker #2: 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.

Speaker #2: 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 is contained in our earnings release issued this evening.

Speaker #2: Unless otherwise noted, I'd now like to turn the call over to UPEXI CEO, Allan Marshall.

Speaker #3: 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 one-year anniversary of our Solana treasury strategy.

Allan Marshall: Thank you, Valter, and welcome everyone to our fiscal Q4 2026 earnings conference call. Our fiscal quarter ending 30 June 2026, marks not only the end of our fiscal year, but also the one-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 US 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 US.

Speaker #3: 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 US administration and its agencies were turning from a headwind to a tailwind for digital assets.

Speaker #3: To bootstrap this strategy, we completed what we believed 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.

Speaker #3: 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.

Allan Marshall: 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 works 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.

Speaker #3: Turning to the quarter, April, May, and June were characterized by a subdued market environment for digital assets and no volatility. Solana generally trended lower throughout the quarter.

Speaker #3: During this bear market, we focused on what we could control: management worked to fortify the balance sheet, reduce debt, and increase capital on hand using our ATM.

Speaker #3: 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.

Speaker #3: 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.

Allan Marshall: We used some of the ATM proceeds to increase our cash position, which totaled $5.8 million as of 30 June, up 65% from the prior quarter end. Separately, in June, we extinguished roughly $20 million in debt. 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 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 30 September, and specifically for our staking revenue to more than cover our ongoing cash expenses on a go-forward basis.

Speaker #3: Separately, in June, we extinguished roughly $20 million in debt. Subsequent to quarter end, we refinanced our existing credit facility, moving the interest rate from 11.5% to 7.5%.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: As previously guided, we expect these efforts to show up in the current quarter ending September 30. Specifically, we anticipate our staking revenue will more than cover our ongoing cash expenses on a go-forward basis.

Speaker #3: Before concluding, I want to express 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.

Allan Marshall: Before concluding, I want to express the fact that this was 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.

Speaker #3: 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.

Speaker #3: 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.

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

Speaker #4: 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.

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.

Speaker #4: 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.

Speaker #4: 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.

Speaker #4: 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.

Speaker #4: Personally, I like to think of this as reimagining our antiquated global financial infrastructure, which was 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.

Brian Rudick: 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. 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 zero 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 $0.0004, a 53% market share of all blockchain transactions, and strong spot ETF inflows compared to large outflows for others.

Speaker #4: And with top performance and distribution, Solana is in the capper 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 zero a year ago, and trading volume of over $5 billion, amounting to a 97% market share. Solana also boasts the cheapest median transaction fee of any chain at just $0.0004, a 53% market share of all blockchain transactions, and strong spot ETF inflows compared to large outflows for others.

Speaker #4: 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.

Brian Rudick: 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 Finance, 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.

Speaker #4: Notable corporate announcements during the quarter were numerous and occurred in various areas from key players, including payments and stablecoins from SoFi, Western Union, MoneyGram, and Mastercard; tokenization and capital markets from State Street, Amundi, Securitize, and Ondo; and infrastructure from Google Cloud, Amazon Web Services, Moody's, and Allfunds.

Speaker #4: 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.

Speaker #4: 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.

Brian Rudick: With that, I'll turn the call over to our Chief Financial Officer, Andrew Norstrud, for a review of our financial performance.

Speaker #2: 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.

Andrew Norstrud: Thank you, Brian. As of 30 June 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 30 June 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. Approximately 95% of these tokens were staked. For the year ended 30 June 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 30 June 2026, general administrative expenses were $26.4 million compared to $11.9 million in the prior year.

Speaker #2: 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, with a cost basis of approximately $360.3 million, equating to an average cost per token of $154.

Speaker #2: 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 had earned approximately 135,000 Solana tokens.

Speaker #2: 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.

Speaker #2: The increase reflects the build-out of the Treasury strategy and includes 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.

Andrew Norstrud: The increase reflects the build-out of the treasury strategy includes a USD 7 million increase in employee compensation, a USD 4 million increase in public company expenses, a USD 1.5 million increase in digital asset treasury fees, a USD 1.2 million increase in legal fees, and a USD 1.1 million increase in travel. Stock-based compensation was approximately USD 21.9 million, compared to USD 2.4 million the prior year. Interest expense was USD 13.6 million, compared to USD 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 was a gain on extinguishment of debt of approximately USD 10.3 million. This reflects the debt reduction on an acquisition loan and the partial repayment of a convertible debt that the company stocked.

Speaker #2: 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.

Speaker #2: The increase reflects the rise 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 interest expense.

Speaker #2: There was a gain on extinguishment of debt of approximately $10.3 million. This reflects the debt reduction on an acquisition loan and the partial repayment of a convertible debt that the company stockpiled.

Speaker #2: 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.

Andrew Norstrud: Net loss for the fiscal year was USD 246.1 million, or $3.87 per share, compared to a net loss of USD 13.7 million, or $1.73 per share in fiscal year 2025. The loss was driven primarily by USD 195.1 million of unrealized losses on digital assets, USD 11.7 million of realized losses on digital assets, and USD 21.9 million stock compensation. During the year, we repurchased approximately 2.9 million shares of common stock and an average weighted price of $0.96 per share, for total consideration of approximately USD 2.8 million under the USD 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 USD 2.5 million.

Speaker #2: 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.

Speaker #2: During the year, we repurchased approximately 2.9 million shares of common stock at an average weighted price of $96 per share, for total consideration of approximately $278 million, under the $50 million repurchase program our board authorized in November of 2025.

Speaker #2: 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, compared to positive equity of $90.1 million a year ago.

Andrew Norstrud: Total stockholders' equity was -USD 53.8 million at 30 June 2026, against positive equity of USD 90.1 million a year ago. The year-over-year change in stockholders' equities 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 opportunities purchase of discounted locked tokens while maintaining prudent leverage and risk management. Now I'll turn it back over to Allan for concluding remarks.

Speaker #2: The year-over-year change in stockholders’ equity primarily reflects the impact of the unrealized losses on our digital asset treasury. Another change is associated with the execution of our treasury strategy.

Speaker #2: Management continues to focus on growing Solana holdings on a per-share basis through disciplined capital activities, staking yield, and opportunistic purchase of discounted lot tokens, while maintaining prudent leverage and risk management.

Speaker #2: And now I'll turn it back over to Allan for concluding remarks.

Speaker #3: 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 in our expenses leave us in a position to capitalize on the inevitable upturn.

Allan Marshall: 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 a material improvement in the Solana price. With that, I'll turn it over to the operator for questions.

Speaker #3: 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.

Speaker #3: With that, I'll turn it over to the operator for questions.

Speaker #4: Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Operator 2: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Brian Van Tine with Alliance Global Partners. Please proceed.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Brian Van Tine with Alliance Global Partners. Please proceed.

Speaker #4: You may press star 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #4: Our first question is from Brian Kinslinger with Alliance Global Partners. Please proceed.

Speaker #5: Great, thanks so much. 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.

Brian Van Tine: Great. Thanks so much. Two questions. My first one is, I am curious if you can discuss the progress and/or ways you can maximize yield and some of the avenues you are exploring to achieve your goals. What are your top priorities for Upexi in the current fiscal year? Then I will ask my second questions.

Brian Kinstlinger: Great. Thanks so much. Two questions. My first one is, I am curious if you can discuss the progress and/or ways you can maximize yield and some of the avenues you are exploring to achieve your goals. What are your top priorities for Upexi in the current fiscal year? Then I will ask my second questions.

Speaker #5: And then, what are your top priorities for Upexi in the current fiscal year? And then I'll ask my second question.

Speaker #3: Brian, do you want to take that one, or do you want me to take it? It was Allan Marshall.

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

Speaker #2: Sure, happy to. Yeah. Brian, thanks for the call. I'd say that we slow-played this a bit. We looked at several different opportunities. At first, one was quite attractive from both a risk and return perspective.

Brian Rudick: Sure. Happy to.

Allan Marshall: Oh, great.

Brian Rudick: Yeah. Brian, thanks for the call. I would say that we slow-played this a bit. We looked at several different opportunities. At 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 is very low risk, and we want to make sure that it can be recurring and also something that investors understand. What I would say is some of the opportunities that we were looking at got less attractive during the quarter. 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. Not a ton to report there, but we are still actively looking, and that is something that we do want to do.

Speaker #2: I recall we have quite a 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.

Speaker #2: What I'd say is some of the opportunities that we were looking at got less attractive during the quarter. We think that as the crypto market comes back, a lot of those opportunities will improve as well, and we can become much more active there.

Speaker #2: So, not a ton to report there, but we're still actively looking, and that is something that we do want to do.

Speaker #5: Great. My second question is, can you explain, with the stock price well below the strike price for the converts, why is management choosing to calculate MNAV as though—seems like they won't?

Brian Van Tine: Great. My second question is, can 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 if they will not, you are trading at 1.4 times, and so capital raising would be accretive to SOL per share. Just love to hear your thought process on those converts.

Brian Kinstlinger: Great. My second question is, can 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 if they will not, you are trading at 1.4 times, and so capital raising would be accretive to SOL per share. Just love to hear your thought process on those converts.

Speaker #5: You're trading at 1.4 times, and so capital raising would be accretive to sole per share. I'd love to hear your thought process on those converts.

Speaker #2: Sure.

Allan Marshall: Sure. Brian, it is Allan Marshall. I think we spoke about this in the past. You are speculating on SOL price and asking us to do that, and I just do not think we are in a position to do that. In July of 2025, within 150 days, SOL went from 234 to 82. So, we have 281 days, assuming we do not either extend them or find a way to convert them like we did with the Hivemind deal. Anything we do would have speculation in it. So we reported these, we know what the dates are, and to assume that they are not going to convert in 281 days when SOL, like I said, went from 234 to 82 in 150 days is just an assumption I am not willing to make. We did this transaction assuming they would convert, and if SOL were back at 200, they would convert.

Speaker #3: Brian to Allan Marshall. I mean, I think I think we spoke about this in the past. I mean, your speculating on sole price and asking us to do that, and then we just I just don't think we're in a position to do that.

Speaker #3: 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.

Speaker #3: So anything we do would have speculation in it. So we reported these—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's just an assumption I'm not willing to make. I mean, we did this transaction.

Speaker #3: Assuming they would convert, and if Sol were back at 200, they would convert. So, I guess we could do, you know, like a percentage-wise estimate on what we think it is, but it would all be speculation.

Allan Marshall: I guess, we could do a percentage-wise on what we think it is, but it would all be speculation. We are just being consistent with how we reported it. As Andy said, we report on our website. We think we will 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. You are making one assumption that it is not going to convert, and I just do not know how we could responsibly make that same, I guess, speculation. If I was that good at speculating, I would have sold all my Solana at 234 and bought it back at 82.

Speaker #3: So this is we're just being consistent with how we reported it. Like Andy said, we have you know, we we report on our on our website.

Speaker #3: We think we'll be able to, you know, either trade value with these converts, find a way to convert them, or Solana could go above a level that would make them convert.

Speaker #3: So you're you're making one assumption that it's not going to convert, and I just don't know how we could make that, you know, responsibly make that same you know, I guess I guess speculation, if if if I was that good at speculating, it would have sold I would have sold all my Solana at $234 and bought it back at $82.

Speaker #5: Okay. Fair enough. Thank you.

Brian Van Tine: Okay. Fair enough. Thank you.

Brian Kinstlinger: Okay. Fair enough. Thank you.

Speaker #2: Yeah, Brian, one thing I would add is, if you take the embedded option in our in-kind notes and run it through any sort of options pricing model—like Black-Scholes—the delta is actually still quite high.

Brian Rudick: Yeah. 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.

Speaker #2: 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.

Brian Rudick: It is because the vol on our stock is extremely high. We would trade with the beta to SOL, and SOL is quite volatile, as you know. That suggests that there is actually still a really, really darn high chance that they do end up converting. I think that volatility is often overlooked, so wanted to mention that as well.

Speaker #2: 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.

Speaker #2: I just wanted to mention that as well. Thank you.

Operator 2: Thank you.

Brian Kinstlinger: Thank you.

Speaker #3: And just a just a not to go further, but you saw we we did the hive mind deal. We converted early. So even if even if somehow we had to possibly reprice them, if it was close or something, so maybe there would be some additional dilution.

Allan Marshall: Just to, 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, maybe there would be some additional dilution. We just can't do a zero. We can't do an all or nothing kind of transaction. So speculating, it's just hard for us right now. But thanks for the question.

Speaker #3: We just can't do it. We just can't do a zero. We can't do an all-or-nothing kind of transaction. So, like, speculation—it's just hard.

Speaker #3: You know, for us, right now.

Speaker #2: Yeah.

Speaker #3: Thanks. Thanks for the question.

Speaker #4: Our next question is from Gareth Garceta with Cantor Fitzgerald. Please proceed.

Operator 2: Our next question is from Gareth Scarletta with Cantor Fitzgerald. Please proceed.

Operator: Our next question is from Gareth Scarletta with Cantor Fitzgerald. Please proceed.

Speaker #6: Hey guys, 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.

Gareth Scarletta: Hey, guys. 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.

Gareth Gacetta: Hey, guys. 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.

Speaker #6: 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 what you just did would be repeatable, or how you would weigh that versus the buyback program.

Speaker #3: I'll get I'm kind of more general as Allan Marshall. Thanks for the question. On a more general level, I think, you know, what we've been able to to do over the, you know, process of building this treasury or starting the treasury and then you know, being the first to to create these in-kind notes, then finding a way to get you know, a deal done with hive mind to make it, you know, beneficial for both sides.

Allan Marshall: Again, 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 and 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. Our process there is 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. There are plenty of negotiating points which could benefit both the investor, ourselves, and the shareholder.

Speaker #3: 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.

Speaker #3: So our process there is, like, how do we find creative ways to create, like, hive mind, whether it's, you know, we go back to the investors and sweeten the deal to, you know, extend the duration.

Speaker #3: Whether we, you know there there there are there are plenty of negotiation negotiating points which could benefit both, you know, the investor ourselves and the shareholder.

Speaker #3: And we're very aware that we, you know, need to, you know, at least start considering those and possibly execute on them on them. We'll go back to, like, the volatility.

Allan Marshall: We're very aware that we need to at least start considering those and possibly execute on them. We'll go back to the volatility. Like I said, it's not unreasonable that we could wake up in June of next year and SOL will be 250. We just 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. 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. Everybody was raise as much money, if you're NAV, put it to work.

Speaker #3: Like I said, it is—you know, it's not unreasonable that we could wake up in, you know, June of next year and SOL be at $250.

Speaker #3: So so so we just we don't want to do something too early, you know, to create a situation where we where we give too much back or we I don't think that's the way to really look at it, but that that's our thought on on that.

Speaker #3: And so, we continue to—you know, when we decide to raise money on the ATM, the closer it is to now, above now, we still think, actually—so we look at it a little differently this year than we did last year.

Speaker #3: Like, everybody was raising a lot of money. If you're now, put it to work. And it turns out that all of that is kind of incorrect in a certain way.

Allan Marshall: 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 a story at 65, unfortunately, 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.

Speaker #3: I mean, correct at the moment in time, but when SOL goes from $234 to $65, everything you bought is upside down. You'd think you'd want to raise as much money as you can if you still believe in the story at $65.

Speaker #3: Unfortunately, that's, you know, 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.

Speaker #3: We are going to look to continue to raise capital in a way that we think is creative, in the scenario where SOLE goes back to both where it's been and maybe to a new high.

Speaker #6: Great, that's super helpful. And then, maybe just touching on the Blueprint delegation. So, it appears that Blueprint is under the umbrella of Hive Mind.

Gareth Scarletta: Great. That's super helpful. Then maybe just touching on the Blueprint delegation. 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? Could you maybe clarify how much of the treasury you're going to shift over to Blueprint?

Gareth Gacetta: Great. That's super helpful. Then maybe just touching on the Blueprint delegation. 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? Could you maybe clarify how much of the treasury you're going to shift over to Blueprint?

Speaker #6: 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?

Speaker #3: I'm not sure I understand.

Allan Marshall: I'm not sure I understand the question.

Speaker #6: You're talking about the validator with Blueprint. And we're not shifting anymore or less. We are, you know, partnering with them. They partnered with us in the past.

Andrew Norstrud: He's talking about the validator with Blueprint. We're not shifting any more or less. We are partnering with them. They've 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 rewards block rewards, everything else. 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.

Speaker #6: We also have a few other validators that are primary ones that give us very good rates. We get back most of the staked block rewards, everything else.

Speaker #6: So that's kind of how we look at it. We don't just favor one, but we're looking at the economics of all of them. Yeah.

Allan Marshall: Yeah.

Andrew Norstrud: Yeah. And it-

Speaker #6: And it.

Speaker #3: Not not oh, let me just yeah. So the blue the blueprint deal was a deal that hive mind Matt and their team and I had been working on for you know, they for a year.

Allan Marshall: Let me just. Yeah. So the Blueprint deal was a deal that Hivemind, Matt, and their team and I had been working on for a year. 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 reward side." That's the way we did that as well.

Speaker #3: So it wasn't really connected. It was just, like, if we're going to deepen our partnership, we wanted to, you know, after that, you're like, "Hey, you know, we can we can maybe increase reward side." So that's that's the way we looked at that as well.

Speaker #6: That makes sense. And I was actually looking into it. It looks like they have a pretty unique platform in general, just from an asset management perspective.

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

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

Speaker #6: So maybe could you just touch on, like, how you see that platform and the uniqueness of it? We don't.

Allan Marshall: Yeah. Some of the things that we. Are you talking about the relationship with Hivemind? We are looking to expand into other. We think the US market is a great market, but they have more access on their platform to enter the Asian market. So for us or Upexi, that partnership was how do we expand our footprint outside of that, and they are great. Making a deal with them, hopefully, would lead to making a deal with other investors in that area of the world. I will let Andy jump in case the question was more about the validator.

Speaker #3: You know, that that we are you talking about so the relationship with hive mind, we're looking to expand into other, you know, we we think the US market, you know, is is a great market, but they have more access on their platform, you know, to enter the Asian market.

Speaker #3: So for us, for Upexi, you know, that partnership was about how do we expand our footprint outside of that. And they're great—you know, making a deal with them hopefully would lead to making a deal with other investors in that area of the world.

Speaker #3: And I'm not—I'll let Andy jump in, in case the question was more about the validator.

Speaker #6: Well, yeah, just with the dashboard and everything else, one of the things that we did with this partnership, you know, before they even had a Solana validator—that was kind of the why we were putting this partnership together.

Andrew Norstrud: Well, yeah. 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 was kind of why we were putting this partnership together prior to the conversion, prior to even actually the deal being done on the convertible. So it has been a process. We work together very well, and we will continue to try to expand that as we go forward in many different ways.

Speaker #6: Prior to the conversion, prior to even actually the deal being done on the convertible. So it's been a process. We worked together very well.

Speaker #6: And we'll continue to try to expand that as we go forward in many different ways. All right. Awesome. Thanks for all the questions and nice results.

Gareth Scarletta: All right. Awesome. Thanks for all the questions and nice results.

Gareth Gacetta: All right. Awesome. Thanks for all the questions and nice results.

Operator 2: There are no further questions at this time. I would like to turn the conference back over to Allan for closing remarks.

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

Speaker #1: There are no further questions at this time. I would like to turn the conference back over to Allan for closing remarks.

Speaker #3: Thank you, everybody, for joining the call today. Thanks for—for the, I said, I'll just reiterate again, we're looking forward into 2027. We think there's a significant bull market coming.

Allan Marshall: 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 we'll close that with a thank you again for everyone and look forward to talking to you or listening to you on the next call.

Speaker #3: We think we'll be able to execute on those strategies. We'll close with a thank you again to everyone and look forward to talking to you or listening to you on the next call.

Operator 2: Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

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