Largest Solana treasury company falls below 1X mNAV

As the bitcoin (BTC) treasury company mania has deflated from its May 12 peak, altcoin treasury stocks suffered even worse.

Already, the largest Solana (SOL) treasury company has fallen below the sacrosanct 1X multiple-to-net asset value or “mNAV.” In other words, investors are willing to pay less for shares of the company than the value of that company’s SOL holdings.

Upexi, as of publication time, has a market capitalization of $330 million. The company holds 1.9 million SOL worth over $353 million, valuing it at a sad, 0.94X mNAV.

For context, Michael Saylor’s market leader of treasury companies, MicroStrategy, trades at a 1.61x mNAV.

Upexi’s slip is a dramatic retracement of its lofty valuation when the company debuted its Solana acquisition plans. On April 21 — the same week that Tether and Bitfinex ignited crypto treasury mania with the launch of Twenty One — executives first announced their Solana treasury.

Shares opened for trading at $10.24 — 245% higher than its prior close — and quickly rallied up to $22 intraday.

In dollar terms, Upexi has given back 67% of that peak value as of today.

In mNAV terms, the losses are even worse: -90%.

Specifically, as of April 21, the world knew that Upexi intended to buy $94.7 million worth of SOL. At $22 per share, Upexi’s market capitalization was $987 million.

On that day, the company sold 43,859,649 million additional shares on top of its 1,040,924 shares outstanding.

A 90% mNAV drawdown in Solana’s largest treasury stock

In other words, Upexi’s mNAV at its April 21 peak was 10.4X. Today, it’s less than 1X.

Read more: Burwick says Solana and Jito ‘co-conspired’ in $1.5B Pump Fun fraud

Although that decline has been ongoing for many weeks, there is another piece of relevant news in the world of Solana treasury companies this week.

Yesterday, Joe McCann, CEO of hedge fund Asymmetric Financial, announced a new SOL treasury company and SPAC deal, Accelerate.

McCann intends to merge with blank check vehicle Gores X Holding and become, if successful, the largest SOL treasury company with up to $800 million worth of funds to buy SOL.

If that deal consummates, it would exceed Upexi’s current largest SOL treasury of $360 million.