A Shift in Corporate Strategy

In a significant change of direction, FG Nexus has sold a portion of its Ethereum holdings to finance a new stock buyback program. The company liquidated 10,922 ETH, valued at approximately $33 million, marking a clear departure from its previous plans to expand its position in the cryptocurrency.

The proceeds from the sale, along with an additional $10 million loan, were used to repurchase 3.4 million company shares. FG Nexus acquired the stock at an average price of $3.45 per share, which is below its reported net asset value of $3.94 per share. This move was a direct response to recent market volatility, particularly Ethereum’s price falling below the $3,000 mark. After the sale, the company’s remaining holdings now stand at 40,005 ETH.

This decision contrasts sharply with the company’s earlier intentions. An August filing with the Securities and Exchange Commission (SEC) indicated that FG Nexus planned to raise capital specifically for further Ethereum acquisitions. The pivot to a stock buyback signals a strategic reassessment in light of current economic conditions.

Diverging Strategies Among Crypto Treasury Firms

FG Nexus isn’t the only company adjusting its crypto treasury strategy. Last month, ETHZilla, another firm with significant Ethereum holdings, sold $40 million worth of ETH to fund its own stock repurchases. These actions highlight the pressures that corporate treasuries face during periods of market decline.

However, not all market players are selling. BitMine, the largest corporate holder of Ethereum, has continued its accumulation strategy. The company recently added another 54,156 ETH to its reserves, bringing its total to nearly 3.6 million ETH. Despite this, BitMine is also navigating the downturn, facing substantial unrealized losses due to the recent drop in Ethereum’s price.