Upexi's revenue doubled but it recorded a loss of $179 million; a drop in SOL dragged down the performance of digital asset vaults.

Nasdaq-listed Solana digital asset vault company Upexi announced its second-quarter results for the fiscal year ended December 31. Revenue for the quarter reached $8.1 million, more than double the approximately $4 million in the same period last year. However, due to a decline in the price of SOL, the company recorded a net loss of approximately $179 million. The report shows that the digital asset business has become the main source of revenue, contributing $5.1 million in the quarter, primarily from SOL staking yields, exceeding the $2.9 million revenue from the consumer brands business. Gross profit increased by 126% year-over-year to $6.7 million. However, the loss was mainly due to approximately $164.5 million in unrealized book losses, i.e., the non-cash accounting impact of adjusting for cryptocurrency market capitalization. Management stated that the underlying vault business continues to generate cash flow through staking yields and plans to explore more yield strategies and hedging tools to mitigate the impact of asset price volatility. As of the end of the quarter, Upexi held more than 2.17 million SOL tokens, of which approximately 95% were pledged; the company stated that its current holdings are close to 2.4 million SOL tokens.