As Solana attempts to reclaim the $220 level as support, an Australian-based firm has joined the trend of Digital Asset Treasury (DAT) companies with a $100 million financing facility for the launch of a new SOL treasury strategy.
According to the announcement, the company has secured a $100 million convertible note facility with a US-based institutional investor to support the launch of its SOL treasury strategy. Notably, $10 million from the initial closing will be immediately deployed to purchase the altcoin.
Following the launch of the Treasury, Fitell plans to rebrand to “Solana Australia Corporation.” Additionally, it has initiated steps for a dual listing on the Australian Securities Exchange (ASX).
Meanwhile, returns generated will be reinvested into the treasury reserve, the company explained. Cailen Sullivan, one of Fitell’s advisors, affirmed that their strategy “focuses not only on Solana itself, but the broader ecosystem of applications being built on top.”
“By deploying more assets on-chain, we aim to generate outsized returns, setting a new benchmark for performance in digital asset management while supporting the growth of DeFi applications on Solana,” Sullivan added.
Fitell Corporation’s CEO, Sam Lu, expressed the company’s ambition to become the largest publicly listed SOL holder in Australia and the Asia Pacific regions:
The launch of our Solana digital asset treasury positions Fitell at the forefront of Solana adoption in the regions of Australia and Asia Pacific. (…) With the expertise of David Swaney and Cailen Sullivan, we are excited to execute on a roadmap that combines innovation, yield generation, and disciplined risk management.
The Pennsylvania-based company announced the first purchase for its DAT strategy on Monday, adding 760,190 SOL, worth approximately $168 million, at an average purchase price of $231.
Forward Industries Inc. is currently the largest corporate SOL Treasury, successfully closing a $1.65 billion private investment in public equity (PIPE) earlier this month to purchase the cryptocurrency, stake it, and generate excess returns.
As of this writing, SOL is trading at $220, a 6.7% decline in the weekly timeframe.
