FG Nexus, the Nasdaq-listed firm that made headlines for adopting Ethereum as its primary treasury reserve, has now reported losses topping $85 million on that strategy. According to Wu Blockchain’s report on June 4, the company scooped up 50,770 ETH last August and September at an average price of $3,860, investing roughly $196 million at peak market levels.
The trouble started when FG Nexus began offloading its Ethereum holdings in November. Since then, it has sold 36,025 ETH at an average price of $2,330, recouping about $83.92 million. The sharp difference between the purchase price and sales proceeds compiles into a realized loss exceeding $85 million.
Ethereum’s steep drop from its 2025 highs crushed these treasury holdings, revealing cracks in strategies that leaned heavily on the asset. While Bitcoin-focused treasury management gained favor thanks to its relatively steadier recovery and broad market acceptance, Ethereum’s volatility and extended downturn hit firms like FG Nexus hard.
Market insiders suggest that FG Nexus’s initial bet on ETH reflected bullish sentiment toward Ethereum’s network upgrades and potential growth. However, the timing backfired amid a wider crypto market slump and intensified macroeconomic headwinds that pressured risk assets across the board.
The company’s partial liquidation of Ethereum reserves raises questions about the durability of ETH-centric treasury approaches and whether firms will recalibrate their digital asset allocations. It also puts a spotlight on the risks of sizeable allocations in volatile crypto assets, especially when market timing fails.
Investors will be watching FG Nexus’s next moves carefully. The company’s public filings or disclosures in the coming quarters could reveal whether it plans to rebalance its treasury strategy or double down on other blockchain assets. Meanwhile, Ethereum’s price action and broader market sentiment remain critical factors shaping treasury reserve outcomes for firms following similar approaches.
FG Nexus Sinks $85M on Ethereum as Treasury Dumps Continue
Nasdaq-listed FG Nexus reported over $85 million in losses on its Ethereum treasury strategy due to selling ETH below its purchase price. Ethereum strategies have faced mixed results amid high volatility and a prolonged bearish trend compared to Bitcoin-focused treasury strategies.