Fitell Corporation Invests $1.5 M in PUMP Token to Boost its Solana Holdings

Australia’s Fitell Corporation has invested $1.5 million to buy 216.8 million PUMP tokens as part of its strategy focused on Solana-based assets.

According to a press release, Fitell allocated $10 million from a $100 million debt fund to purchase Solana (SOL), which at the current price of $203.27 would amount to approximately 49,200 tokens.

This suggests that Fitell already owned a lot of SOL before acquiring PUMP, and the new PUMP purchase is an addition to those holdings, not a replacement.

The move followed the creation of a debt fund that initially funded its SOL purchases and is now helping it branch out into other assets.

Fitell’s PUMP Acquisition Raises Risk Concerns

Fitell made a bold bet by purchasing PUMP tokens worth a large portion of the token’s $6.8 million market cap, and its stock dropped by 8.31% to $5.52 after the news.

While Solana treasury activity is rapidly growing, with VisionSys starting a $2 billion fund, analysts warn that Fitell’s large token purchase is very risky for its size.

Fitell’s actions show its planning for the future, shifting from selling fitness equipment to managing digital assets by using its SOL and PUMP tokens for investment returns, with plans to rebrand as “Solana Australia Corporation” to mark the change.

PUMP Token Shows Rapid Growth

PUMP’s total market cap surged by 90% in a month to $2.5 billion, according to market data. While this rapid rise has attracted some institutional interest, its trading activity shows mixed signals.

Data from Coinglass indicates that PUMP’s open interest in derivatives is approximately $190 million, and the 0.98 long-to-short ratio on Binance suggests traders are evenly split on whether the price will rise or fall.

However, PUMP’s trading volume has fallen nearly 30% to $466.8 million, indicating less trading activity despite an increase in the number of futures contracts being held.

On TradingView, PUMP is trading around $0.00708, up about 1% for the day, and may face resistance before reaching its all-time high of $0.0090. If it attains this level, it would strengthen the bullish trend and reward investors who stay in the rally.