Fitell Corporation Completes Initial $10 million Solana (SOL) Purchase Following the First Closing under $100M Financing Facility

Rhea-AI Summary

Fitell Corporation (NASDAQ: FTEL) has completed its initial purchase of 46,144 Solana (SOL) tokens for approximately $10 million, marking the first strategic acquisition under its newly announced Solana treasury initiative. This purchase follows the first closing of the company's recently announced $100 million financing facility.

Under the facility's terms, at least 70% of net proceeds from each subsequent closing will be allocated to cryptocurrency acquisitions for the treasury reserve, with the remainder designated for crypto operations, on-chain initiatives, and working capital. The company plans to make additional SOL purchases using proceeds from the first closing.

Positive

• Initial strategic acquisition of 46,144 SOL tokens worth $10M demonstrates swift execution
• Secured $100M financing facility for cryptocurrency initiatives
• Minimum 70% of future proceeds allocated to crypto treasury building
• Company has established customer base with over 100,000 served

Negative

• Significant exposure to volatile cryptocurrency market risks
• Substantial shift from core fitness equipment business model
• Large capital allocation to crypto assets may impact working capital availability

Insights

Cryptocurrency Investment Strategist

Fitell's $10M Solana purchase marks major pivot into crypto treasury strategy, potentially transforming the fitness retailer's financial profile.

Fitell Corporation's $10 million acquisition of 46,144 Solana (SOL) tokens represents a significant strategic pivot for a company historically focused on fitness equipment retail. This move mirrors the treasury diversification strategy pioneered by companies like MicroStrategy, but with Fitell choosing Solana rather than Bitcoin. The purchase is particularly notable as it occurred just one day after announcing their $100 million financing facility, demonstrating unusually rapid execution.

The company's commitment to allocate at least 70% of future financing proceeds to cryptocurrency acquisitions signals this isn't merely an experimental position but a fundamental transformation of their treasury strategy. For context, this $10 million SOL purchase likely represents a substantial portion of Fitell's balance sheet given their profile as a fitness equipment retailer.

This treasury strategy introduces significant new variables for investors to consider. While Solana has shown strong technological capabilities with high transaction throughput and lower fees compared to Ethereum, it also brings substantial volatility and regulatory uncertainty. The company will now face direct exposure to crypto market cycles, potentially amplifying both upside and downside scenarios for shareholders.

By establishing a dedicated crypto treasury, Fitell has effectively transformed from a pure-play fitness retailer into a hybrid business with significant digital asset exposure. The mention of "growing staking revenue" indicates plans to generate yield from their SOL holdings through Solana's proof-of-stake validation mechanism, creating a new potential revenue stream entirely separate from their core retail business.

Corporate Finance Analyst

This strategic shift represents a fundamental transformation of Fitell's capital allocation strategy and risk profile. The $10 million Solana purchase likely constitutes a significant percentage of the company's balance sheet assets, creating material cryptocurrency exposure for what was previously a straightforward fitness equipment retailer.

The financing structure merits careful analysis. While the press release mentions a $100 million facility, it doesn't specify the terms, costs, or dilution involved. The commitment to allocate 70% of proceeds to cryptocurrency purchases essentially transforms this fitness retailer into a leveraged cryptocurrency investment vehicle. This introduces significant financial complexity as Fitell must now manage crypto volatility alongside operational business cycles.

The staking revenue mentioned suggests Fitell intends to participate in Solana's consensus mechanism to generate yield. However, this introduces technical risks (slashing penalties if validation fails), lockup periods, and potential regulatory uncertainty around staking rewards. From a financial perspective, the company now has a dual identity – its traditional fitness retail operations and its new function as a cryptocurrency treasury vehicle.

While cryptocurrency treasury strategies have benefited some companies during crypto bull markets, they've also created significant challenges during bear markets. The success of this strategy depends heavily on both Solana's specific performance and the broader cryptocurrency market conditions. Investors familiar with Fitell's previous business model must now assess an entirely different set of financial risks and opportunities created by this strategic pivot.

Taren Point, Australia, Sept. 24, 2025 (GLOBE NEWSWIRE) -- Fitell Corporation (NASDAQ: FTEL) (“FTEL” or the “Company”), today announced its initial acquisition of 46,144 Solana (SOL) for approximately $10 million, marking the first strategic purchase under the Company’s previously announced Solana treasury initiative.

“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” said Sam Lu, Chief Executive Officer of FTEL. “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.”

The SOL purchase follows the first closing under the Company’s $100 million facility. FTEL intends to make additional SOL purchases using a significant portion of net proceeds from the first closing. Under the terms of the facility, at least 70% of the net proceeds from each subsequent closing will be allocated to cryptocurrency acquisitions for the Company’s treasury reserve, with the remainder to be used for broader crypto operations, on-chain initiatives, and working capital.

FTEL will provide periodic updates as it expands its treasury reserve.

About Fitell Corporation

Fitell Corporation, through GD Wellness Pty Ltd (“GD”), its wholly owned subsidiary, is an online retailer of gym and fitness equipment both under its proprietary brands and other brand names in Australia. The company’s mission is to build an ecosystem with a whole fitness and wellness experience powered by technology to our customers. GD has served over 100,000 customers with large portions of sales from repeat customers over the years. The Company’s brand portfolio can be categorized into three proprietary brands under its Gym Direct brand: Muscle Motion, Rapid Motion, and FleetX, in over 2,000 stock-keeping units (SKUs). For additional information, please visit the Company’s website at www.fitellcorp.com.

 Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, including market and other conditions, and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For more information, please contact:

Chief Financial Officer
Edwin Tam
edwin@gymdirect.com.au

Investor Relations
ir@fitellcorp.com

FAQ

How many Solana (SOL) tokens did Fitell Corporation (FTEL) purchase in September 2025?

Fitell Corporation purchased 46,144 Solana (SOL) tokens for approximately $10 million in September 2025.

What is the size of FTEL's new financing facility announced in September 2025?

FTEL announced a $100 million financing facility, with at least 70% of net proceeds allocated to cryptocurrency acquisitions.

How will Fitell Corporation use the proceeds from its $100M financing facility?

At least 70% of net proceeds will be used for cryptocurrency acquisitions, while the remainder will fund crypto operations, on-chain initiatives, and working capital.

What is Fitell Corporation's core business?

Fitell Corporation operates as an online retailer of gym and fitness equipment through its subsidiary GD Wellness, selling both proprietary brands and other brand names in Australia.

How many customers has Fitell Corporation served through GD Wellness?

The company has served over 100,000 customers with a significant portion being repeat customers.