The global market continues to respond to recent changes in corporate crypto strategies, with several companies investing heavily in blockchain assets amid widespread market fluctuations. In particular, Australian fitness equipment manufacturer Fitell made headlines after buying more than 46,000 Solana Tokens, causing investors’ concern and sharply lowered its stock. This trend underscores the growth trends in corporate financial management that integrates cryptocurrencies and raises questions about market stability and future regulations.
- Fitell’s $10 million investment in Solana led to a 21% drop in stock, highlighting the market’s sensitivity to corporate crypto buying.
- The company has pledged to allocate 70% of its revenue from its recent funding to digital assets, signaling a strategic shift towards blockchain-based assets.
- Several companies, including medical devices and blockchain companies, experienced a decline after intense cryptocurrency purchases, indicating potential volatility from Corporate Treasury allocation.
- The Solana ecosystem shows that companies such as Solmate, Helius and Defi Development Corp have supported Sol Holdings, and now account for nearly 3% of the total supply.
Australian fitness equipment maker Fitell experienced a sharp 21% decline in stock prices on Wednesday after announcing investments in more than 46,000 Solana tokens worth around $10 million. Market data shows that companies registered with NASDAQ closed trading sessions at $6.65, with just 0.15% increase during trading outside of business hours. This move shows a significant shift in corporate financial strategies as businesses increasingly allocate assets to cryptocurrency and blockchain projects.
This is at least the fifth company this week, and we can see the inventory slide following the crypto acquisition, reflecting broader market concerns about company exposure to digital assets. Previously, medical device company Helius Medical Technologies saw its shares plummet nearly 34% after revealing its purchase of Solana worth around $175 million. Other companies such as CEA Industries, Bitmine Immersion Technologies and Strategy Inc. also experienced a decline of 19.5%, 10%, and 2.5%, respectively, following the recent Crypto Treasury Investments.
Fitness equipment company makes a cryptographic turn
Fitell’s latest move comes a day after it announced plans to acquire Solana by issuing a $100 million convertible note, showing a significant strategic pivot. The company has revealed it intends to allocate 70% of its net revenue from each funding transaction to digital currency.
“With strong institutional support, we aim to expand Sol Holdings, raise revenue and generate long-term shareholder value,” said CEO Sam Lu. Additionally, on Tuesday, the company appointed advisors David Swanney and Kylen Sullivan to assess debt opportunities and associated risks, focusing on the optimization of the Digital Asset Treasury through a yield model.
Despite these ambitions, Fitter’s stock fell 95.69% this year. As analysts described as “low performance that has not been overrated,” there was a major decline in February amid suspicions about the rating.
Solana Treasury is growing rapidly
Meanwhile, the ecosystems supporting Solana continue to expand, with corporate finances increasing their holdings of Sol tokens. Companies such as Solmate, Helius and Defi Development Corp have accumulated Sol reservoirs, and now represent about 3% of Solana’s total supply. In particular, Solmate was rebranded from Brera Holdings after raising $300 million to build infrastructure within the Solana ecosystem.
Earlier this month, Helius Medical Technologies announced plans to raise up to $1.25 billion from the Solana-based Department of Digital Assets Treasury. Private placements closed on September 18th. Currently, 17 entities have around 17.04 million Sol Tokens, which make up almost 3% of total distribution supply, according to strategic preliminary data.
This trend highlights Solana’s growing institutional interest in blockchain and encourages speculation that corporate financial strategies will play an influential role in the future of cryptocurrency and blockchain innovation amid evolving regulatory and market dynamics.