Interactive Strength Inc. (TRNR), a professional fitness equipment manufacturer based in the United States, announced plans to establish the largest listed cryptocurrency vault in the US, centered around an artificial intelligence (AI) Token.
The company plans to secure up to $500 million through a securities purchase agreement. These funds will be used to acquire Artificial Intelligence Alliance (FET) Tokens related to the Fetch.ai project.
US Fitness Company Establishes FET Token Vault
According to the official announcement, this plan began with an initial $55 million investment from private equity firm ATW Partners and Web3 investment and market-making company DWF Labs.
This was the first step in TRNR's strategy to significantly increase its FET holdings. Additionally, for security, TRNR will collaborate with BitGo, a major cryptocurrency custody service provider, to manage and trade FET assets.
The goal of this strategy is to strengthen the company's financial flexibility. It also supports TRNR's ambitions in AI and digital fitness. The aim is to provide shareholders with greater exposure to emerging growth assets.
"Fetch.ai is leading the market at the intersection of two of today's most important technological trends: artificial intelligence and cryptocurrency. We believe our strategy of acquiring FET Tokens in large quantities can significantly accelerate our mission of creating long-term value for TRNR shareholders." โ Trent Ward, TRNR CEO
Specifically, Fetch.ai will collaborate with TRNR to enhance digital fitness offerings and accelerate the development of an AI-based personal training platform.
This move positions FET as a notable altcoin in the expanding trend of cryptocurrency vault establishment, alongside Solana (SOL), Ethereum (ETH), XRP(XRP), and Bittensor (TAO).
Despite the announcement, according to CoinGecko, FET, the fourth-largest AI Token, did not show an immediate price increase. In fact, the value of altcoins dropped by 6.9% over the past day, trading at $0.75 at the time of reporting.
Nevertheless, cryptocurrency analyst and investor Ted Pillows believes the price could recover soon. In a recent X (formerly Twitter) post, Pillows emphasized that FET is approaching a breakthrough and could rise above $1.
"$0.7-0.72 appears to be a strong support line. Therefore, it's a buying opportunity during a dip. If FET breaks above $0.8, it will quickly rise to $1.1-$1.2." โ Post
Meanwhile, TRNR's stock showed a pattern of surging after the news, followed by a decline. The stock price surged and then fell.
At the time of writing, the stock price was $0.91, a 21.3% decline since the announcement.
