Fitell Corp Pivots to Solana with Major PUMP Purchase

Fitell Corporation, an Australian company listed on the Nasdaq, has acquired 216.8 million Pump.fun (PUMP) tokens for $1.5 million. This move deepens the company’s strategic shift toward a treasury focused on Solana-based digital assets.

The investment follows Fitell’s earlier allocation of $10 million to purchase SOL, the native token of the Solana blockchain. The new PUMP acquisition expands, rather than replaces, its existing crypto holdings. This significant investment in PUMP, the native token of a popular Solana-based memecoin launchpad, was funded through a $100 million convertible debt facility.

The scale of the purchase is notable, considering Fitell’s market capitalization is approximately $6.8 million. Following the announcement, the company’s stock experienced an 8.31% drop to $5.52, suggesting a cautious investor reaction to its aggressive crypto strategy.

A New Identity and Business Model

This investment marks a significant pivot for Fitell, which is transitioning from its original business as a fitness equipment retailer to a digital asset treasury. The company plans to rebrand as Solana Australia Corporation to better reflect its new focus on the Solana ecosystem.

Fitell intends to deploy its SOL and PUMP tokens in structured yield-generating products, signaling a complete overhaul of its business model. This strategy aligns with a growing trend of institutional interest in Solana, exemplified by firms like VisionSys, which recently launched a $2 billion treasury centered on the blockchain.

PUMP Price Analysis and Market Signals

The PUMP token has seen substantial growth, gaining 36% over the past week to trade at $0.0068. Its market cap surged by over 90% in the last month, reaching approximately $2.5 billion amid a broader market rally.

Technical indicators present a mixed but generally positive outlook. The Chaikin Money Flow indicator remains above zero, suggesting that capital is flowing into the asset. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is approaching a bullish crossover, which would confirm strengthening upward momentum.

PUMP is currently testing a key resistance level at $0.0077. A successful break above this point could clear a path toward its all-time high of $0.0090. Conversely, failure to break resistance could see the price fall to a support level at $0.0062.

While trading volume has declined by nearly 30% to $466.8 million, open interest in derivatives has climbed to $190 million. This divergence suggests that while new trading activity has slowed, existing investors are holding their positions. The long-to-short ratio on Binance stands at 0.98, indicating a nearly even split in market sentiment between bullish and bearish traders.