A tiny Australian fitness company with a $6.8 million market cap just spent $1.5 million on tokens from a platform known for launching memecoins. Fitell Corporation announced on Thursday that it had purchased 216.8 million PUMP tokens, the native asset of the Solana-based launchpad Pump.fun, sending its stock tumbling 15% as shareholders questioned the dramatic strategic pivot.
CEO Sam Lu defended the acquisition as “deepening our participation in Solana’s growth story” while diversifying the company’s digital asset treasury for long-term stakeholder opportunities. PUMP has surged over 90% in the past month to reach a $2.5 billion market cap, though its volatility contrasts sharply with Fitell’s traditional fitness equipment business.
Ambitious Treasury Strategy Raises Eyebrows
The purchase follows Fitell’s September announcement of a $100 million convertible note facility with a U.S. institutional investor, allocating $10 million initially for SOL purchases. The company plans to rebrand as Solana Australia Corporation and eventually generate yields through “structured products” deploying SOL assets.
Fitell appointed advisors David Swaney and Cailen Sullivan to guide its digital transformation. “The company plans to become the biggest publicly listed holder of Solana in the Asia-Pacific region. To start, its Solana assets will be securely stored with BitGo, a digital asset custody and security company. They will be staked using trusted institutional systems, while also working towards being listed on the Australian Securities Exchange.”
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