Fitell's move into crypto faces skepticism from investors, even as institutions remain hopeful

Fitell’s shares tumbled by 21% after the company unveiled a $100 million

treasury initiative, signaling a major change in direction for the Australian fitness equipment maker. The company, which trades on Nasdaq, announced it would dedicate 70% of the net proceeds from a $100 million convertible note to Solana, with the goal of becoming the largest Solana holder among public companies in the Asia-Pacific. The first acquisition involved $10 million worth of Solana tokens, financed through the convertible note, with BitGo Trust Company in the U.S. providing custody and institutional partners overseeing staking title1 [ 1 ].

CEO Sam Lu described the decision as a strategic long-term shift, highlighting that staking income and digital asset management would be central to Fitell’s future direction. The firm also intends to pursue a dual listing on the Australian Securities Exchange and has brought on advisors such as David Swaney and Cailen Sullivan to refine its staking approach. Despite these plans, investors reacted with caution, sending the stock down to $6.65 at Wednesday’s close and pushing year-to-date losses past 95%. This reaction is consistent with a broader pattern, as companies like Helius Medical Technologies and CEA Industries have also seen steep declines after adopting similar crypto treasury strategies title2 [ 2 ].

The Solana treasury approach is increasingly popular among institutions, with 17 organizations now collectively holding more than 17 million Solana tokens—representing 2.96% of the total supply. Notable recent moves include Brera Holdings’ transition to Solmate and the launch of a $300 million fund to support Solana infrastructure, while Helius Medical Technologies secured $500 million for its Solana-based treasury. Even as institutional interest grows, market instability and investor wariness remain significant hurdles. Fitell’s stock decline reflects a recurring trend where crypto treasury announcements trigger immediate sell-offs, even when companies express confidence in long-term prospects title3 [ 3 ].

Fitell’s new direction marks a departure from its traditional focus on fitness equipment, mirroring a wider movement of companies diversifying into digital assets. However, the company’s steep 95% share price drop this year underscores the challenge of persuading investors about the sustainability of crypto-driven business models. Experts point out that, while institutional faith in Solana is on the rise, short-term investor attitudes remain hesitant. Fitell’s ability to deliver on staking returns and align its digital asset ambitions with shareholder expectations will be crucial to the strategy’s outcome title4 [ 4 ].

The growing use of Solana treasuries highlights a transformation in corporate finance, as firms look to blockchain solutions for new revenue streams. However, the mixed reactions from the market show that investor confidence in these approaches is still evolving. For

and similar companies, the key challenge is to balance the promise of long-term growth with the reality of current market doubts. Should institutional adoption persist, market sentiment may eventually shift, but for now, volatility and uncertainty remain title5 [ 5 ].