Nasdaq-Listed Company Makes Unexpected Investment in Altcoin
Australia-based Fitell Corporation announced on Thursday that it has purchased 216.8 million PUMP tokens, paying $1.5 million for the purchase.
PUMP is the native token of Pumpfun, the memecoin launch platform within the Solana ecosystem. The token has a market capitalization of approximately $2.5 billion and has seen its price rise by more than 90% in the past month.
Fitell CEO Sam Lu commented on the investment with the following words:
“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.”
Last month, the company announced a convertible bond agreement with a US-based institutional investor for up to $100 million. It was also announced that the initial $10 million allocated under this agreement would be used to acquire SOL.
Fitell's move is quite ambitious for a Nasdaq-listed company with a market capitalization of just $6.8 billion. Shares of the company fell 15% to $5.14 after the acquisition was announced.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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