Fitell (FTEL) stock fell hard on Wednesday after the fitness and wellness company announced its first acquisition to establish a crypto treasury strategy. The company spent $10 million to acquire 46,144 Solana (SOL-USD) tokens. The company used money from its $100 million facility to purchase these tokens.
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Fitell noted that this won’t be the last time the company purchases Solana tokens. It intends to use a significant portion of the net proceeds from its $100 million facility to acquire more of the crypto. It also said it will use up to 70% of net proceeds from subsequent closings to acquire additional SOL tokens.
Sam Lu, CEO of Fitell, said, “This initial $10 million purchase, in one day following our $100 million financing announcement, manifests FTEL’s execution and commitment to our newly launched Solana treasury strategy. With committed institutional support, we look forward to expanding our SOL position, in addition to growing staking revenue, and drive long-term value for shareholders.”
Fitell Stock Movement Today
Fitell stock was down 13% in pre-market trading on Wednesday, following a 9.93% rally yesterday. The shares have decreased 3.2% year-to-date and 51.96% over the past 12 months.
Is Fitell Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage of Fitell is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates FTEL stock a Neutral (42) with no price target. It cites “significant financial performance challenges, including declining revenues and profitability, negative returns, and cash flow issues” as reasons for this stance.
