Australian Fitness Firm Shares Drop 21% on Solana Treasury Bet

On Wednesday, Fitell announced that it had bought more than 46,000 SOL worth almost $10 million. This was a large step toward a treasury strategy that focuses on .

The move, which was announced alongside a $100 million convertible note issuance, sets aside 70% of the transaction proceeds for purchasing digital currencies. The remainder would be used for cryptocurrency operations, on-chain activities, and operating capital.

Sam Lu, the CEO of Fitell, said that the goal is to increase the company’s stake in Solana, increase staking revenues, and create long-term value for shareholders. The company has hired advisors like David Swaney and Cailen Sullivan to assist with treasury management and explore DeFi options that can generate revenue.

The Stock Market’s Reaction and a Trend in The Industry 

The news led to a significant decline in the market, and Fitell’s stock price dropped 21% over the day, closing at $6.65 on Wednesday. Shares went up by only 0.15% in the later than-hours market, closing at $6.66. Fitell’s stock is down 95.69% this year, and the loss in shares exacerbates the company’s financial situation. The stock sharply in February because it was overvalued and underperforming.

Fitell is one of many companies that have viewn their stock prices drop later than announcing large crypto purchases. later than purchaseing nahead $175 million worth of Solana, the medical equipment company Helius Medical Technologies saw its stock drop 34% this week. The stock prices of CEA Industries (down 19.5%), BitMine Immersion Technologies (down 10%), and (down 2.5%), the companies with the most BTC, all fell by similar amounts.

Solana Treasuries Gaining Traction

The fit-tech company’s change coincides with a rise in corporate treasuries focused on Solana. Brera Holdings changed its name to Solmate last week. The company wants to build Solana infrastructure and has raised $300 million for its treasury.

Helius Medical Technologies and DeFi Development Corp, on the other hand, have significantly increased their Solana holdings. Helius raised $500 million for its Solana DAT, and DeFi Development Corp’s treasury is now worth more than $400 million.

Currently, 17 entities have locked up approximately 17.04 million , which accounts for about 2.96% of the overall . They are doing this as part of their digital asset treasury strategies. This wave indicates that an increasing number of institutions are interested in the Solana ecosystem, despite the market’s volatility in the short term.

Future and Risks

Fitell’s acceptance of Solana and strategy aligns with the broader sector’s trends, but market reactions indicate that shareholders remain cautious about high-risk diversification outside their core business lines. 

Fitell’s success will depend on its ability to generate a steady profit and manage the risks associated with digital assets that are constantly evolving. As more companies lock up their supply, Solana’s position in managing corporate treasuries is changing rapidly. Investors and industry leaders will closely monitor it.