Australian fitness equipment maker Fitell fell 21% on Wednesday after announcing it bought more than 46,000 Solana (SOL) for around $10 million.
The Nasdaq-listed company closed Wednesday’s trading session at $6.65, only making a mere increase of 0.15% and closed the after-hours session at $6.66, according to Google Finance.
Fitell is now at least the fifth company this week that has seemingly disappointed its shareholders with crypto buying.
Earlier this week, shares of Medical device company Helius Medical Technologies dropped by nearly 34% after it purchased around $175 million of Solana.
In addition, BNB treasury company CEA Industries, Ethereum treasury firm BitMine Immersion Technologies and the largest Bitcoin holder Strategy Inc., saw their stock price decrease by 19.5%, 10%, and 2.5%, respectively, at the end of Monday’s trading session after some recent crypto buys.
Fitness equipment company turned crypto treasury firm
The buy comes only a day after the company revealed its crypto pivot, issuing a $100 million convertible note to accumulate Solana for its treasury.
On Wednesday, it stated that it would use 70% of the net proceeds from each transaction to buy digital currencies, with the remainder being used for its crypto operations, onchain activities, and as working capital.
“With committed institutional support, we look forward to expanding our SOL position, in addition to growing staking revenue, and drive long-term value for shareholders,” said Fitell CEO Sam Lu.
The company on Tuesday also appointed David Swaney and Cailen Sullivan as advisers, who are tasked with optimizing the company’s digital asset treasury through yield-generating models, assessing DeFi opportunities and risks associated with them.
Fitell’s shares are down 95.69% this year, with a significant plunge in February, after analysts called it “overvalued and underperforming.”
Solana treasury firms now hold 3% supply
Meanwhile, Solana digital asset treasuries are growing at a rapid rate, with companies like Solmate, Helius, DeFi Development Corp, and many more adopting SOL to their respective treasuries.
Related: DeFi Development Corp’s Solana treasury exceeds $400M after latest buy
Last week, Brera Holdings rebranded to Solmate, with the intention of forming a Solana treasury and focusing on creating infrastructure for the Solana ecosystem after raising $300 million.
Neurotech company Helius Medical Technologies announced on Sept. 15 its plan to raise $500 million for its Solana DAT.
The company closed its private placement on Sept. 18, with the company having the option to raise an additional $750 million if it decides to exercise its right, which would bring the total raise to $1.25 billion.
Currently, 17.04 million Solana are held by 17 entities, which amounts to 2.96% of Solana’s total supply locked up by Solana DATs, according to Strategic SOL Reserve.
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