Australia-based Fitell Corporation, listed on Nasdaq, announced on Thursday that it has purchased 216.8 million PUMP tokens for $1.5 million, allocating the entire amount to its corporate treasury. PUMP is the native token of Pumpfun, a memecoin launch platform within the Solana ecosystem, with a market capitalization of approximately $2.5 billion and a price surge of over 90% in the past month.
Fitell CEO Sam Lu stated, "We are deepening our participation in Solana's growth story and aiming to capture long-term growth opportunities for our stakeholders by diversifying our digital asset portfolio." This move is part of Fitell's strategic expansion into Solana, following a recent convertible bond agreement for up to $100 million with an initial $10 million allocated to acquire SOL. Despite the ambitious investment, Fitell's shares fell 15% to $5.14 after the announcement, reflecting market skepticism.
The acquisition marks a significant step in institutional adoption for memecoins, as PUMP's price increased by 2.5% in 24 hours to $0.006829, though trading volume declined by 14.28% to $749.16 million. Solana's co-founder Anatoly Yakovenko endorsed Pump.Fun's features, highlighting its potential competitiveness with platforms like TikTok.
