Upexi, Inc. Announces Strategic Investment in Alpha Exchange

Rhea-AI Summary

Upexi (NASDAQ: UPXI) announced a strategic investment in Cybersyn Holdings' Alpha Exchange, a new cryptocurrency trading platform. The initial $750,000 investment grants Upexi a 14.9% royalty on all future platform revenues.

The agreement includes two additional investment opportunities: $250,000 upon platform completion and reaching 10,000 active users (increasing royalty to 19.9%), and another $250,000 at 25,000 active users. At this stage, Upexi can maintain the 19.9% royalty or convert part of its interest into a 9.99% equity stake.

Alpha Exchange, set to launch in Q4 2025, will feature AI-driven trading insights, real-time analytics, and institutional-grade security, focusing on emerging and mid-cap tokens on Solana and Base networks.

Positive

• Initial investment of $750,000 secures 14.9% royalty on all future platform revenues
• Potential to increase royalty interest to 19.9% with additional investments
• Option to convert royalty into 9.99% equity stake provides flexibility
• Strategic expansion into high-growth cryptocurrency market
• Platform launch in Q4 2025 targets underserved market segments

Negative

• Success dependent on unproven platform reaching user milestones
• Competitive risks in crowded cryptocurrency trading platform market
• Initial investment requires substantial capital outlay before revenue generation

Insights

Financial Analyst

Upexi's Alpha Exchange investment creates potential revenue stream with limited capital outlay, though returns remain speculative until platform launch.

Upexi's $750,000 initial investment in Alpha Exchange represents a calculated entry into cryptocurrency markets without the typical risks of direct crypto exposure. The structured deal gives Upexi a 14.9% royalty on all future platform revenues, potentially increasing to 19.9% with additional investments totaling $500,000 contingent on user adoption milestones.

The tiered investment approach is particularly astute as it minimizes initial capital outlay while maintaining future optionality. If Alpha Exchange achieves 25,000 active users, Upexi can either maintain its 19.9% perpetual royalty stream or convert a portion into a 9.99% equity stake—providing flexibility as the platform's economics become clearer.

The deal structure demonstrates financial discipline, with total potential investment capped at $1.25 million for nearly 20% of revenue exposure. For context, this represents a relatively modest allocation for Upexi while providing meaningful diversification into digital assets without direct cryptocurrency volatility exposure.

While strategically sound, investment success hinges entirely on Alpha Exchange's ability to execute in an extremely competitive marketplace dominated by established players. With launch not expected until Q4 2025, revenue generation remains speculative. The focus on emerging and mid-cap tokens on Solana and Base chains suggests a niche strategy, which could either provide differentiation or limit overall market opportunity.

Investment Grants the Company Up to 19.9% Royalty Interest in Alpha Exchange Revenues

TAMPA, Fla., Aug. 28, 2025 (GLOBE NEWSWIRE) -- Upexi, Inc. (NASDAQ: UPXI) (the "Company" or "Upexi"), a brand owner specializing in the development, manufacturing, and distribution of consumer products with diversification into the cryptocurrency space, today announced its initial strategic investment in Cybersyn Holdings, LLC (“Cybersyn”), owner of Alpha Exchange, a next-generation cryptocurrency trading platform built to serve both new and experienced investors that is expected to launch in the fourth quarter of 2025.

The Alpha Exchange platform combines AI-driven trading insights, real-time analytics, and intuitive tools with institutional-grade security and strict regulatory compliance. Initially focused on emerging and mid-cap tokens on Solana and Base, Alpha Exchange differentiates itself from larger incumbents, targeting underserved market segments while building long-term value through user engagement, education, and community-driven features.

Allan Marshall, Upexi’s Chief Executive Officer, stated, “We are excited to announce Upexi’s investment into Alpha Exchange, a dynamic platform that aligns with our vision of leveraging innovative technologies to drive shareholder value. Through this agreement, Upexi will participate directly in the platform’s growth by earning a royalty interest on future revenues, with the potential to expand that interest as Alpha Exchange reaches key user milestones. This strategic investment provides Upexi with exposure to a unique, high-growth platform and demonstrates our focus on supporting innovative business opportunities with strong potential for long-term success.”

Under the terms of the agreement, Upexi will make an initial investment of $750,000 in Alpha Exchange in exchange for a royalty equal to 14.9% of all future gross revenue generated by the platform. The agreement also provides for two additional investments: a further $250,000 upon completion of the platform and achievement of 10,000 active users, which would increase Upexi’s royalty interest to 19.9% of gross revenue, and an additional $250,000 investment upon the achievement of 25,000 active users. At that stage, Upexi will have the option to either maintain its 19.9% royalty in perpetuity or convert a portion of its interest into a 9.99% equity stake in Alpha Exchange on a fully diluted basis.

About Upexi, Inc.:
Upexi is a brand owner specializing in the development, manufacturing, and distribution of consumer products. The Company has entered the cryptocurrency industry and cash management of assets through a cryptocurrency portfolio. For more information on Upexi’s treasury strategy and future developments, visit www.upexi.com.

Follow Upexi on X - https://x.com/upexitreasury
Follow CEO, Allan Marshall, on X - https://x.com/upexiallan
Follow CSO, Brian Rudick, on X - https://x.com/thetinyant

Forward Looking Statements:
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with business strategy, potential acquisitions, revenue guidance, product development, integration, and synergies of acquiring companies and personnel. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Company Contact
Brian Rudick, Chief Strategy Officer
Email:brian.rudick@upexi.com
Phone: (216) 347-0473

Media Contact
Gasthalter & Co.
Upexi@gasthalter.com

Investor Relations Contact
KCSA Strategic Communications
Valter Pinto, Managing Director
Email: Upexi@KCSA.com
Phone: (212) 896-1254

FAQ

What is Upexi's (UPXI) investment in Alpha Exchange worth?

Upexi's initial investment is $750,000, with potential additional investments of $250,000 each upon reaching 10,000 and 25,000 active users, totaling up to $1.25 million.

What percentage royalty will Upexi (UPXI) receive from Alpha Exchange?

Upexi will receive a 14.9% royalty on gross revenue initially, which can increase to 19.9% with additional investment upon reaching user milestones.

When will Alpha Exchange platform launch?

Alpha Exchange is expected to launch in the fourth quarter of 2025.

What blockchain networks will Alpha Exchange operate on?

Alpha Exchange will initially focus on emerging and mid-cap tokens on the Solana and Base networks.

Can Upexi (UPXI) convert its royalty interest into equity in Alpha Exchange?

Yes, after reaching 25,000 active users, Upexi can choose to convert part of its 19.9% royalty interest into a 9.99% equity stake on a fully diluted basis.