Australia-based Fitell Corporation is accelerating its investments in the Solana ecosystem to expand its digital asset treasury. The company announced the acquisition of 216.8 million units of PUMP, the native token of Solana-based memecoin platform Pump.fun. The purchase was announced at a cost of $1.5 million.
PUMP has become a symbol of the growth of the Solana network in recent months. Reaching a market capitalization of approximately $2.5 billion, the token has gained over 90% in value in the past month. Pump.fun's surpassing Hyperliquid in daily revenue demonstrates the platform's rapid growth in the ecosystem.
Fitell CEO Sam Lu commented on the investment decision, saying, "We are taking a deeper role in Solana's growth story. We aim to capture long-term opportunities for our shareholders by diversifying our treasury strategy."
The company has previously taken steps toward Solana
The company's connection with Solana is based on previous steps. Last month, Fitell signed a convertible bond agreement with a US-based institutional investor for up to $100 million. The first $10 million of this financing package was earmarked for the purchase of Solana (SOL). At current prices, this equates to approximately 49,000 SOL tokens. The new PUMP purchase is seen as a complement to this strategy.
However, Fitell's bold move also comes with risks. The Nasdaq-listed company has a market capitalization of only $6.8 million. However, the $1.5 million PUMP investment is quite ambitious from a balance sheet perspective. Following the news, Fitell's share price fell by over 8 percent to $5.52. This suggests that investors are wary of the company's aggressive crypto strategy.
Furthermore, Fitell is not only acquiring assets but also plans to generate returns by investing its SOL and PUMP tokens in structured financial products. This strategy reflects the company's goal of establishing an active income model rather than solely passive treasury management. Fitell's journey is one of the most notable transformations in the crypto world. Just a few years ago, the company, an e-commerce company selling gym and fitness equipment, is now on its way to becoming a Solana-based digital asset treasury. To formalize this change, Fitell even announced plans to change its name to "Solana Australia Corporation."
On the market front, the rapid rise of the PUMP token appears to have slowed somewhat. Open interest on derivatives exchanges has reached $190 million, while the long/short ratio is at 0.98, according to Binance data, suggesting a stabilization of market expectations. Trading volume has fallen 30 percent in the last 24 hours to $466 million. PUMP price is currently trading around $0.0071.
