Australian Company Fitell Loses 21% in Value Due to Solana Investment

Shares of Australian fitness equipment manufacturer Fitell dropped 21% after the company announced the purchase of over 46,000 Solana (SOL) worth nearly $10 million.

Notably, Fitell’s stock has already plunged 95.69% this year, with a major decline occurring in February after analysts labeled the company “overvalued and inefficient.”

Fitell bought 46,000 SOL just a day after announcing the creation of a crypto reserve, issuing $100 million in convertible bonds to invest in Solana.

The company stated that 70% of net profits from each transaction would be used to purchase the altcoin, while the remainder would go toward crypto operations, on-chain activity, and working capital.

“With continued institutional support, we expect to expand our SOL positions, increase staking income, and enhance long-term shareholder value,” said Fitell CEO Sam Lu.

Fitell became at least the fifth company this week to seemingly disappoint its shareholders with a crypto purchase. Earlier this week, shares of Helius Medical Technologies, a medical equipment manufacturer, fell nearly 34% after it acquired Solana worth almost $175 million.

See also: "Bitcoin Falls Below $110,000 Amid Options Expiry"

#Solana (SOL) #Price drop

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