Investment holding company FG Nexus (Fundamental Global) announced a strategic shift, designating Ethereum (ETH) as its core treasury reserve asset. The firm plans to allocate up to $200 million for this purpose, financed through the sale of 40 million common stock warrants priced at $5 per warrant.
The company emphasized that the anticipated value extends beyond potential ETH price appreciation. FG Nexus specifically aims to generate staking rewards and gain exposure to the expanding market of tokenized real-world assets built upon the Ethereum ecosystem.
Despite the substantial commitment, the market reaction was sharply negative. Shares of FG Nexus plummeted 13.7% on the announcement day, signaling significant investor apprehension regarding this deployment of capital.
FG Nexus’s move aligns with a growing trend of companies adding ETH to their balance sheets. Notably, other firms like BitMine Immersion Technologies and SharpLink Gaming have also acquired significant ETH holdings. This pattern of institutional adoption, exemplified by Ether Machine’s recent purchase of $56.9 million ETH timed with the Ethereum network’s decadal milestone, reflects increasing corporate confidence in Ethereum’s long-term role.