Fitell's Solana Acquisition Leads to Stock Decline Amid Crypto Buying Trend

According to Cointelegraph, Australian fitness equipment manufacturer Fitell experienced a significant stock drop of 21% on Wednesday following its announcement of acquiring over 46,000 Solana tokens for approximately $10 million. The Nasdaq-listed company concluded Wednesday's trading session at $6.65, marking a slight increase of 0.15%, and closed the after-hours session at $6.66, as reported by Google Finance. This decline positions Fitell as the fifth company this week to face shareholder disappointment due to cryptocurrency purchases. Earlier in the week, Helius Medical Technologies, a medical device company, saw its shares plummet by nearly 34% after investing around $175 million in Solana. Similarly, BNB treasury company CEA Industries, Ethereum treasury firm BitMine Immersion Technologies, and Strategy Inc., the largest Bitcoin holder, experienced stock price reductions of 19.5%, 10%, and 2.5%, respectively, following recent crypto acquisitions. Fitell's transition from a fitness equipment company to a crypto treasury firm was marked by the issuance of a $100 million convertible note aimed at accumulating Solana for its treasury. The company plans to allocate 70% of the net proceeds from each transaction towards purchasing digital currencies, with the remainder supporting its crypto operations, on-chain activities, and serving as working capital. Fitell CEO Sam Lu expressed optimism about expanding the company's Solana position, enhancing staking revenue, and driving long-term shareholder value with committed institutional support. Additionally, Fitell appointed David Swaney and Cailen Sullivan as advisers to optimize its digital asset treasury through yield-generating models and assess DeFi opportunities and associated risks. Despite these strategic moves, Fitell's shares have declined by 95.69% this year, notably plunging in February after analysts labeled the company as "overvalued and underperforming." Meanwhile, Solana digital asset treasuries (DATs) are rapidly expanding, with companies like Solmate, Helius, and DeFi Development Corp integrating SOL into their treasuries. Last week, Brera Holdings rebranded to Solmate, aiming to establish a Solana DAT and develop infrastructure for the Solana ecosystem after securing $300 million. Neurotech company Helius Medical Technologies announced plans on September 15 to raise $500 million for its Solana DAT, closing its private placement on September 18 with an option to raise an additional $750 million, potentially totaling $1.25 billion. Currently, 17 entities hold 17.04 million Solana, representing 2.96% of Solana's total supply locked up by Solana DATs, according to Strategic SOL Reserve.