Nasdaq-Listed Fitell Shares Drop After $10M Solana Buy, Prompting Investor Questions About Crypto Treasury Plan

• Fitell bought ~46,000 SOL for ~$10M, announcing a crypto treasury pivot

• Shares fell 21% on the announcement and closed at $6.65 (after-hours $6.66), per Google Finance data.

• Solana DATs now hold ~17.04M SOL, about 2.96% of supply, per Strategic SOL Reserve.

Fitell Solana purchase: Fitell bought $10M of SOL and shares plunged; read implications and expert context on corporate crypto treasuries — learn more.

What happened when Fitell bought $10 million of Solana?

Fitell purchased more than 46,000 Solana (SOL) for roughly $10 million as part of a newly announced crypto treasury strategy. The Nasdaq-listed fitness equipment maker revealed a $100 million convertible note to accumulate SOL, and disclosed that 70% of net proceeds from transactions will be used to buy digital currencies.

How did markets react to Fitell’s crypto treasury pivot?

Shares of Fitell dropped 21% on the announcement, closing Wednesday’s trading session at $6.65 and finishing after-hours at $6.66, according to Google Finance. Investors have recently punished several small-cap firms that shifted into large crypto treasuries, including recent moves by Helius Medical Technologies and others.

Why did Fitell pivot from fitness equipment to a crypto treasury?

Fitell announced a strategic shift to build a digital-asset treasury and staking business, citing plans to use a $100 million convertible note to accumulate SOL and generate staking yield. CEO Sam Lu said the company expects to expand its SOL position and grow staking revenue, aiming to drive long-term shareholder value.

The company also named advisers David Swaney and Cailen Sullivan to optimize the digital-asset treasury, focusing on yield-generation and DeFi risk assessment.

Are other companies building Solana treasuries?

Yes. Several firms are forming Solana digital-asset treasuries (DATs). Notable corporate moves include Helius Medical Technologies, Brera Holdings’ rebrand to Solmate, DeFi Development Corp, and others that have publicly signaled material SOL accumulation.

Strategic SOL Reserve data indicates 17.04 million SOL are held by 17 entities, roughly 2.96% of total supply, reflecting rapid DAT growth. Companies and market observers cited include Strategic SOL Reserve, Google Finance, and public filings from the firms mentioned (all cited as plain text sources).

Frequently Asked Questions

How much SOL does Fitell now hold in its treasury?

Fitell announced a purchase of more than 46,000 SOL, roughly valued at $10 million at the time of the buy, as an initial position within a larger $100 million convertible-note accumulation strategy.

Will Fitell stake SOL to generate revenue?

The company stated it plans to grow staking revenue and use 70% of net proceeds to buy digital currencies; advisers were appointed to design yield-generating models and assess DeFi risks in practice.

Key Takeaways

• Immediate market impact: Fitell shares fell 21% on the $10M SOL buy, signaling investor wariness.
• Strategic pivot: A $100M convertible-note program will fund ongoing SOL accumulation and staking initiatives.
• Industry context: Solana DATs now hold multiple millions of SOL (17.04M across 17 entities, ~2.96% supply), showing growing corporate adoption.

Conclusion

Fitell’s $10 million Solana purchase marks a bold corporate shift and reflects a wider trend of firms building digital-asset treasuries. Investors should weigh governance, liquidity, and staking assumptions when valuing such pivots. For ongoing coverage and data-driven analysis, follow COINOTAG updates and relevant public filings.