Fitell's acquisition of 46,000 SOL resulted in a big dump of 21% in stock price, and many companies' encryption strategies faced obstacles.

[Coin World] Australian fitness equipment manufacturer Fitell announced on Wednesday that its stock price fell sharply by 21% after its acquisition of over 46,000 Solana Tokens for approximately $10 million. According to data platforms, the NASDAQ-listed company had a Closing Price of $6.65 on Wednesday, a slight rise of 0.15%, with an after-hours trading Closing Price of $6.66. This decline makes Fitell the fifth company this week to disappoint shareholders due to the purchase of Crypto Assets.

Earlier this week, medical device company Helius Medical Technologies saw its stock price plummet nearly 34% after investing approximately $175 million in Solana. Similarly, the stock prices of certain trading platform funding companies CEA Industries, Ethereum funding company BitMine Immersion Technologies, and the largest Bitcoin holder Strategy Inc. fell by 19.5%, 10%, and 2.5%, respectively, after recent Crypto Assets acquisitions.

Fitell has transformed from a fitness equipment company into a crypto assets management company, with its flagship initiative being the issuance of $100 million in convertible bonds to accumulate Solana assets. The company plans to use 70% of the net proceeds from each transaction to purchase digital currency, while the remaining portion will be used to support its crypto assets operations, on-chain activities, and as working capital.

Fitell CEO Sam Lu expressed optimism about expanding the company's holdings in Solana, enhancing Staking yields, and driving long-term shareholder value through institutional support. Additionally, Fitell appointed David Swaney and Cailen Sullivan as advisors to optimize its digital asset fund management through revenue models and assess DeFi opportunities and associated risks. Despite these strategic initiatives, Fitell's stock price has fallen by 95.69% this year, particularly in February, when analysts labeled the company as "overvalued and underperforming," leading to a sharp drop in stock price.

At the same time, the Solana Digital Assets Treasury (DAT) is rapidly expanding, with companies such as Solmate, Helius, and DeFi Development Corp integrating SOL into their treasuries. Last week, Brera Holdings was renamed Solmate, aiming to establish the Solana DAT after securing $300 million in funding and developing infrastructure for the Solana ecosystem. Neural tech company Helius Medical Technologies announced on September 15 plans to raise $500 million for its Solana DAT and completed a private placement on September 18, with an option for additional financing of $750 million, potentially bringing the total to $1.25 billion. Currently, 17 entities hold 17.04 million Solana, accounting for 2.96% of the total supply locked in the Solana DAT.