Fitell, an Australian fitness equipment manufacturer, experienced a 21% drop on Wednesday following its announcement of acquiring over 46,000 Solana (SOL) tokens for approximately $10 million.
The Nasdaq-listed firm concluded Wednesday’s trading day at $6.65, showing a slight increase of 0.15%, and closed the after-hours session at $6.66, as stated by Google Finance.
This marks at least the fifth company this week that has seemingly disappointed stakeholders with crypto investments.
Earlier in the week, shares of medical device company Helius Medical Technologies plummeted approximately 34% after it invested around $175 million in Solana.
Moreover, CEA Industries, linked to BNB treasury, BitMine Immersion Technologies, associated with Ethereum treasury, and Strategy Inc., the largest Bitcoin holder, saw declines in their stock prices of 19.5%, 10%, and 2.5%, respectively, by the end of Monday’s trading following recent crypto purchases.
Fitness equipment firm becomes a crypto treasury business
This acquisition came just a day after the announcement of Fitell’s shift towards cryptocurrency, which involved the issuance of a $100 million convertible note to accumulate Solana for its treasury.
On Wednesday, it announced that it would allocate 70% of the net proceeds from each transaction to purchase digital currencies, with the remaining funds designated for its crypto operations, onchain activities, and working capital.
“With the backing of committed institutional support, we anticipate expanding our SOL position, enhancing staking revenues, and creating long-term value for shareholders,” stated Fitell CEO Sam Lu.
The company also appointed David Swaney and Cailen Sullivan as advisers to improve its digital asset treasury using yield-generating models and evaluating DeFi opportunities and risks.
Fitell’s shares have plummeted by 95.69% this year, with a significant downturn in February, following analysts deeming it “overvalued and underperforming.”
Solana treasury firms now possess 3% of the supply
In the meantime, Solana digital asset treasuries are rapidly expanding, with firms such as Solmate, Helius, and DeFi Development Corp adopting SOL into their treasuries.
Related: DeFi Development Corp’s Solana treasury surpasses $400M following latest acquisition
Last week, Brera Holdings rebranded as Solmate, aimed at establishing a Solana treasury and building infrastructure for the Solana ecosystem after raising $300 million.
Neurotech company Helius Medical Technologies declared its intent on Sept. 15 to raise $500 million for its Solana DAT.
The firm concluded its private placement on Sept. 18, with the possibility of raising an additional $750 million if the option is exercised, totaling a potential raise of $1.25 billion.
Currently, 17.04 million Solana are held by 17 entities, representing 2.96% of Solana’s total supply secured by Solana DATs, according to Strategic SOL Reserve.
Magazine: XRP ETF pump ‘disappointment,’ Bitcoin to see out 2025 at $173K: Trade Secrets
