Fitell, an Australian fitness equipment manufacturer, saw its shares plummet by 21% on Wednesday following the announcement of its acquisition of over 46,000 Solana for approximately $10 million.
The Nasdaq-listed company concluded Wednesday’s trading session at $6.65, marking a negligible rise of 0.15%, and finished the after-hours trading at $6.66, as reported by Google Finance.
This marks at least the fifth instance this week where companies have disappointed their shareholders through crypto investments.
Earlier, shares of Helius Medical Technologies, a medical device firm, plummeted nearly 34% after it invested about $175 million in Solana.
Additionally, CEA Industries, known for its BNB treasury, BitMine Immersion Technologies, an Ethereum treasury firm, and Strategy Inc., the largest Bitcoin holder, all experienced declines of 19.5%, 10%, and 2.5% respectively, at the end of Monday’s trading due to recent crypto purchases.
Gear Manufacturer Becomes Crypto Treasury Firm
This acquisition followed a day after Fitell announced its shift towards cryptocurrency, having issued a $100 million convertible note aimed at accumulating Solana for its treasury.
On Wednesday, it declared that 70% of net proceeds from each transaction would be allocated to the purchase of digital currencies, with the remaining funds directed towards its crypto operations, on-chain activities, and working capital.
“With strong institutional backing, we look forward to enhancing our SOL holdings, increasing staking revenue, and delivering long-term value for our shareholders,” stated Fitell CEO Sam Lu.
On Tuesday, the company also appointed David Swaney and Cailen Sullivan as advisers, responsible for optimizing the company’s digital asset treasury using yield-generating models and evaluating DeFi opportunities and associated risks.
This year, Fitell’s shares have dipped by 95.69%, with a considerable decline occurring in February, following analysts labeling the company as “overvalued and underperforming.”
Solana Digital Asset Treasuries Hold 3% Supply
In the meantime, Solana digital asset treasuries (DATs) are rapidly increasing, with entities such as Solmate, Helius, and DeFi Development Corp incorporating SOL into their treasuries.
Related: DeFi Development Corp’s Solana treasury surpasses $400 million following recent purchase
Last week, Brera Holdings rebranded to Solmate, aiming to establish a Solana DAT and enhance the Solana ecosystem after raising $300 million.
Neurotech firm Helius Medical Technologies announced on September 15 its plan to raise $500 million for its Solana DAT.
Following a successful private placement on September 18, the company has the potential to raise an additional $750 million, which would total $1.25 billion if exercised.
Currently, 17.04 million Solana are owned by 17 entities, representing 2.96% of Solana’s total supply reserved by Solana DATs, as per Strategic SOL Reserve.
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