FG Nexus’ Major ETH Sale Raises Big Questions About the Future of Corporate Ethereum Treasuries

FG Nexus, once known as Fundamental Global, positioned itself as one of the first public companies built around an Ethereum-based treasury strategy. The firm raised $200 million to buy ETH, stake it for rewards, and prove that a digital asset could function like a long-term corporate reserve. It was an ambitious plan that drew significant attention across the Ethereum community.

But the company has now taken a dramatic step. FG Nexus sold 10,922 ETH, worth around $33 million, to buy back its own shares after its stock price fell sharply. The decision surprised many and has sparked a debate about whether holding ETH as a corporate reserve is as stable as some believed. For beginners and seasoned investors alike, this moment offers an important lesson in how public companies balance crypto assets, shareholder expectations, and financial pressure.

FG Nexus faced a widening gap between the value of the ETH it held and the price at which its stock was trading in the market. In simple terms, the company’s shares became much cheaper than the value of the assets behind them. This created pressure from investors and made management worry that the company was being undervalued.

To fix this, FG Nexus decided to buy back a large amount of its own stock. Share buybacks reduce the number of shares in circulation, which can make each remaining share worth more. But to fund this, the company had to sell a portion of its ETH treasury.

Even after the sale, FG Nexus still holds a substantial amount of Ethereum, with estimates showing that its remaining balance is around 40,000 ETH, along with additional cash reserves. This suggests the company did not abandon its ETH-based strategy. Instead, it tried to strike a balance between maintaining long-term Ethereum exposure and responding to short-term market concerns.

The company also continues to emphasize staking and restaking as key parts of its strategy. These activities allow FG Nexus to earn yield from its ETH holdings, which remain central to its long-term vision.

The decision to sell ETH for a stock buyback may help the company stabilize its share price, but it also raises important concerns about the sustainability of using Ethereum as a corporate treasury asset. ETH is highly volatile. If its price rises sharply after a sale, the company may not be able to easily rebuild its position. If it falls, the value of the remaining treasury weakens. This creates a constant balancing act between protecting shareholder value and maintaining long-term confidence in ETH’s potential.

Another issue is that buybacks use funds that could otherwise be invested into growth, research, or new business opportunities. When a company sells a core asset to stabilize its share price, some investors may interpret it as a sign that the business is reacting to pressure rather than confidently executing a long-term plan. Finally, investor trust plays a major role in any treasury strategy. If stakeholders feel the company is shifting direction too quickly or selling assets in response to market stress, confidence can erode. For firms that rely on public markets, this is a meaningful risk that must be managed carefully.

FG Nexus is part of a growing group of companies experimenting with holding ETH as a core reserve, similar to how traditional firms hold cash or gold. This model is still new, and this event shows the challenges that come with it.

Public companies operate under constant scrutiny. They answer to shareholders, manage stock performance, and follow strict financial reporting rules. When the value of a crypto asset moves quickly, it can directly influence how these firms make decisions. This can lead to unexpected asset sales, delayed investments, or rapid changes in strategy. FG Nexus’ move highlights how difficult it can be to maintain a pure “long-term ETH accumulation” strategy while also navigating the pressures of the public market.

FG Nexus’ decision shows how challenging it can be for public companies to rely on Ethereum as a long-term reserve asset. While the firm is still committed to its ETH strategy, this move highlights the real-world pressures that can force even bullish companies to adjust their plans.

Do you think more companies will follow FG Nexus’ model of holding Ethereum as a reserve asset, or will this setback make others more cautious?