Fitell Rebrands as Solana Australia, Aims to Lead APAC's DeFi Charge

Fitell Corporation (NASDAQ: FTEL) has launched Australia’s first Solana (SOL)-based digital asset treasury, securing an up to $100 million convertible note facility to fund its strategic pivot into the cryptocurrency sector. The company, traditionally an online fitness equipment retailer, announced its intention to become the largest publicly listed holder of Solana in the Asia-Pacific region. Initial proceeds from the financing, which included a $10.78 million initial closing, will be allocated to purchase SOL, with plans to reinvest returns into on-chain decentralized finance (DeFi) and structured yield strategies.

The treasury strategy, designed to generate outsized returns, will deploy SOL across a diversified suite of DeFi protocols, including options, snowballs, and liquidity provisioning. Fitell emphasized that returns will be reinvested to compound SOL accumulation, enhancing share value and aligning with the Solana community. Advisors David Swaney and Cailen Sullivan, both veterans in the digital asset space, will lead the initiative. Swaney highlighted the potential for yield generation beyond staking to differentiate the strategy, while Sullivan noted the focus on integrating with Solana’s ecosystem to support DeFi growth.

Fitell’s rebranding to “Solana Australia Corporation” is underway, accompanied by steps toward a dual listing on the Australian Securities Exchange (ASX). The company’s initial SOL assets will be custodied by BitGo Trust Company, with institutional-grade staking infrastructure. Sam Lu, CEO of Fitell, stated the move positions the firm at the forefront of Solana adoption in Australia and the Asia-Pacific, underscoring confidence in the network’s long-term potential.

The financing structure includes a 6% annual interest rate on convertible notes, with a 13% default rate. Proceeds are secured by all company assets, including the acquired cryptocurrency. The notes are senior to existing debt and require monthly interest payments in shares or cash. Rodman & Renshaw acted as the exclusive placement agent, receiving fees and expense reimbursements totaling approximately $450,000.

Fitell’s strategic shift coincides with addressing Nasdaq compliance issues. A 1-for-16 reverse stock split, effective September 23, 2025, aims to meet the $1.00 minimum bid price requirement by the September 29 deadline. The second closing of $4 million in convertible notes is contingent on resolving this compliance matter.

The company’s pivot reflects a broader industry trend of traditional firms entering crypto markets. By leveraging Solana’s high-speed blockchain and DeFi innovations, Fitell aims to capitalize on yield opportunities while mitigating risks through structured strategies. However, the move introduces exposure to cryptocurrency volatility and regulatory uncertainties, particularly as U.S. and EU frameworks for stablecoins evolve.