Public companies BIT Mining and Upexi have expanded their Solana holdings, underscoring a growing corporate trend of utilizing digital asset treasuries to offer investors leveraged exposure to major cryptocurrencies, impacting institutional demand and market dynamics.

Executive Summary

Public companies BIT Mining and Upexi have significantly increased their Solana (SOL) token holdings, illustrating a growing corporate strategy of establishing "digital asset treasuries" (DATs). This approach aims to provide investors with leveraged exposure to major cryptocurrencies, potentially driving institutional demand and market prices, while also introducing new investment vehicles and associated risks.

The Event in Detail

BIT Mining announced an additional purchase of 17,221 SOL, bringing its total holdings to over 44,000 SOL. As of September 10, 2025, this treasury was valued at approximately $9.95 million. Concurrently, Upexi reported holding 2,018,419 SOL, valued at $447 million on the same date. Upexi also noted a 126% increase in its "adjusted SOL per share" since the launch of its Solana treasury strategy, with the figure reaching 0.0197 or $4.37. Substantially all of Upexi's SOL holdings are staked, generating an approximate 8% yield, which translates to roughly $105,000 in daily revenue.

Financial Mechanics and Business Strategy

The expansion of BIT Mining and Upexi's Solana treasuries exemplifies a broader trend where public companies accumulate crypto assets, often financing these acquisitions through stock or debt sales. This strategy, pioneered by firms like MicroStrategy with Bitcoin, involves leveraging public markets to gain digital asset exposure.

BIT Mining is deepening its involvement in the Solana ecosystem by operating validators and exploring additional opportunities. The company plans to rename to SOLAI Limited, pending shareholder approval, and has launched DOLAI, a USD-denominated stablecoin on the Solana blockchain, in collaboration with Brale Inc. Bo Yu, Chairman and Chief Operating Officer of BIT Mining, stated, "DOLAI represents our vision for a compliant, high-efficiency, AI-native stablecoin that not only meets the demands of consumers, merchants, traders, developers, and institutional users, but is also positioned to power the next generation of AI agent-driven financial interactions."

Companies employing this digital asset treasury model often utilize financing structures such as equity offerings and can layer on leverage, including convertible debt, to amplify returns from their digital asset holdings.

Market Implications and Regulatory Environment

The growing adoption of digital asset treasuries by public companies could significantly increase institutional demand for major crypto assets, potentially influencing market prices and further legitimizing cryptocurrencies as corporate treasury assets. This trend introduces complex investment vehicles that may attract traditional investors.

However, this strategy carries inherent risks. The use of leverage, while amplifying gains in bull markets, exposes companies to severe vulnerabilities during market downturns. Such leverage reduces shock absorption and could trigger margin calls or forced liquidations, potentially exacerbating price declines. When Digital Asset Treasury Company (DAT) stocks transition from trading at premiums to discounts relative to their net asset value, there can be pressure on management to liquidate crypto holdings.

Nasdaq has recently implemented enhanced oversight for publicly traded companies that issue equity to finance cryptocurrency purchases. New measures mandate shareholder approval for new share issuances aimed at accumulating digital assets, with the potential for trading suspension or delisting for non-compliance. These regulations are designed to enhance transparency and protect investors, though they may introduce delays and complexities in capital raising for DATs.

The evolving U.S. regulatory landscape, including proposed crypto-friendly rulemaking and potential crypto asset listings on national exchanges, suggests a maturing crypto ecosystem. Companies are now tasked with balancing strategic ambition in blockchain utilization with stringent compliance, robust governance, and effective investor engagement.