Simply put
- FG Nexus has sold off over $31 million worth of its Ethereum assets.
- The news led to a more than 7% decline in the company’s shares, bringing its monthly loss to nearly 37%.
- FG Nexus has utilized the proceeds to buy back its own shares and currently retains $115 million in ETH.
Shares of FG Nexus (FGNX), a company focused on Ethereum finance, dropped over 7% following announcements about selling part of its Ethereum holdings for a share buyback.
This company was previously known as Fundamental Global. In July, it had successfully raised $200 million in a private placement. By late September, FG Nexus had amassed more than 50,000 ETH but sold off 10,922 ETH—around $31.3 million at the current prices—to boost its share buyback efforts alongside a $200 million program.
“Since we started the share buybacks, we’ve managed to repurchase 8% of our outstanding shares at a notably lower cost than net asset value, while keeping a good balance of ETH and cash,” stated Kyle Cerminara, chairman and CEO of FG Nexus.
“We plan to keep buying back shares as long as our stock remains below NAV. The decrease in shares, paired with a rise in net asset value per share, has a significant impact on our valuation,” he added.
FG Nexus is among the Ethereum treasury companies to liquidate some of its holdings for share buybacks. In October, ETHZilla (ETHZ) also announced they sold around $40 million in assets for a similar purpose.
Other digital asset firms, such as SharpLink Gaming, are also engaging in stock buyback programs if their mNAV dips below 1, aiming to benefit shareholders. The mNAV measures a company’s market capitalization against the value of its holdings.
As of Wednesday, FG Nexus holds 40,005 ETH (valued at roughly $115 million) and about $37 million in USDC. So far, approximately 3.4 million FGNX shares have been repurchased at an average price of $3.94.
The current stock price sits significantly below its historical average, closing at $2.41 on Thursday. Over the past month, FGNX has plummeted nearly 37% and has decreased more than 85% over the last six months. The stock was over $40 back in August.
As for their ETH Treasury holdings, they’re currently positioned just outside the top seven largest listed Ethereum government bonds.
