Fitell’s $100M Solana Treasury Plan Drives 21% Stock Slide
Fitell, a NASDAQ-listed Australian fitness equipment maker, revealed a new $100 million Solana treasury strategy, including an initial ~$10 million purchase of over 46,000 SOL tokens. The plan, funded by convertible notes custodied at BitGo, allocates 70% of net proceeds to expand SOL holdings and generate staking revenue, with the remainder covering crypto operations, on-chain activities, and working capital. Advisory support will optimize yield models and explore DeFi opportunities. In response, Fitell’s stock plunged 21% to $6.65, mirroring investor concerns seen at Helius Medical and CEA Industries after large Solana investments. Data shows 17 entities now control about 3% of SOL’s circulating supply, highlighting growing institutional adoption. Despite short-term market skepticism, Fitell’s leadership remains committed to its long-term Solana treasury approach to bolster staking yields and develop structured crypto products.
Bullish
Fitell’s sizeable Solana treasury plan underscores growing institutional demand and commitment to long-term staking revenue. By purchasing SOL and locking tokens in staking, the company reduces available circulating supply, a factor that typically supports upward price pressure. Although the stock sell-off reflects equity market skepticism, the direct impact on SOL’s market dynamics is positive: sustained corporate treasury allocations and enhanced staking yields point to bullish fundamentals for Solana.