Solana DAT firm Upexi latest crypto treasury to launch stock buyback program

Upexi (ticker UPXI) is the latest digital asset treasury company to announce a stock buyback program, according to an announcement on Thursday. The Nasdaq-listed Solana treasury firm's board approved a $50 million repurchase program to acquire outstanding common shares.

"The share repurchase program will enhance Upexi's flexibility to purchase shares of its common stock in the open market, subject to market conditions and other factors," Upexi wrote. "The Company expects to execute share repurchases opportunistically, consistent with its disciplined capital allocation approach and commitment to delivering sustainable, long-term value for shareholders."

Upexi is joining a list of so-called DATs that are looking to bolster their share prices through open-ended buybacks. The trend has accelerated in recent months , particularly among firms acquiring altcoins like Ethereum and Solana that launched this year, like SharpLink Gaming (SBET) and the Solana Company (HSDT).

By and large, crypto treasury firms operate by trying to achieve a positive ratio between their share price and net asset valuation (NAV), the per-share value of their crypto holdings — meaning that when their stocks dip, repurchases can help signal confidence to investors and improve their mNAV metrics.

"This share repurchase program underscores our confidence in Upexi's strategy, balance sheet, and long-term growth trajectory," Upexi CEO Allan Marshall said. "We view the repurchase program as an additional tool to enhance shareholder value and will deploy it only when management believes the repurchase represents an attractive return on capital without compromising our ability to pursue strategic growth or maintain a strong treasury position."

Of note, Upexi reported total revenue of $9.2 million for its most recent quarter, compared to $4.4 million in last year’s quarter, and net income of $66.7 million compared to a net loss of $1.6 million for the year-ago period. The firm launched its SOL acquisition strategy in April and holds more than 2.1 million SOL.

UPXI shares are down 5.03% at press time to around $3.21, according to Google Finance. SOL is trading around $150.

In July, Galaxy Research published a report noting that most DATs appear to be correlated to each other and the underlying crypto market, raising concerns about the danger of a potential marketwide downtrend driven by stock repurchases.

"If redemptions or buybacks become widespread among firms, that could be the beginning of a larger-scale unwind," Galaxy wrote .