EddieJayonCrypto
25 Sep 25
Australian fitness giant Fitell's $10M investment in Solana sent its stock plunging 21%, joining a trend of companies facing investor backlash after crypto bets. The move highlights growing skepticism about corporate cryptocurrency holdings amid volatile market reactions.
**Fitell’s Crypto Bet Backfires: Stock Plummets 21% as Solana Treasury Frenzy Spreads** Australian fitness equipment giant Fitell made headlines this week—not for its workout gear, but for its $10 million bet on Solana (SOL). The move sent its stock plunging 21% on Wednesday, joining a growing list of companies that have seen their shares tank after investing in cryptocurrency. Fitell’s decision to allocate 70% of proceeds from a $100 million convertible note toward Solana has sparked both curiosity and skepticism, raising questions about the risks of corporate crypto holdings. Fitell’s stock closed at $6.65 on Wednesday, a mere 0.15% gain for the day, but the after-hours session saw a slight uptick to $6.66. The drop came just days after the company announced its pivot to a “crypto treasury firm,” signaling a shift from fitness equipment to digital assets. CEO Sam Lu touted the move as a way to “expand our SOL position” and “drive long-term value for shareholders,” but investors weren’t convinced. This isn’t an isolated case. Fitell is now the fifth company this week to disappoint shareholders with a crypto purchase. Helius Medical Technologies, for instance, saw its stock dive 34% after acquiring $175 million worth of Solana. CEA Industries (BNB treasury) and BitMine Immersion Technologies (Ethereum-focused) also faced steep declines, while Bitcoin giant Strategy Inc. lost 2.5% of its value. The pattern suggests a growing unease among investors about the volatility and strategic wisdom of corporate crypto investments. Fitell’s move highlights the broader trend of companies leveraging digital assets to bolster balance sheets. Solana, in particular, has become a popular choice for treasuries, with 17 entities now holding 2.96% of the network’s total supply. Companies like Solmate (formerly Brera Holdings) and Helius Medical have raised hundreds of millions to fund Solana-based projects, betting on the blockchain’s scalability and growth potential. But the risks are clear. Fitell’s shares have plummeted 95.69% this year, with analysts previously calling the company “overvalued and underperforming.” The crypto bet may be a desperate attempt to reinvigorate investor confidence, but it’s backfiring. Even as Solana’s ecosystem expands, the market’s reaction to corporate crypto purchases remains volatile. What’s next for Fitell? The company has appointed advisers to optimize its digital asset treasury, but the path forward is uncertain. As more firms pile into Solana and other cryptocurrencies, the question isn’t just whether these investments will pay off—it’s whether investors will trust them. In a market where hype and volatility go hand in hand, Fitell’s story serves as a cautionary tale: even the most strategic bets can backfire when the tide turns. Will the Solana treasury frenzy continue, or is this the beginning of a reckoning? The answer could shape the future of corporate crypto investing.