In brief
- FG Nexus sold over $31 million worth of Ethereum from its treasury holdings.
- Shares in the firm sold off more than 7% amid the news, pushing its monthly loss to nearly 37%.
- It's using the proceeds to repurchase shares as a benefit for shareholders, and still holds $115 million in ETH.
Shares in publicly traded Ethereum treasury firm FG Nexus (FGNX) finished the day down more than 7% following word that the firm dumped a portion of its Ethereum holdings to buy back shares.
Formerly known as Fundamental Global, the firm raised $200 million via a private placement in July to kick-start its Ethereum treasury strategy. It acquired more than 50,000 ETH by the end of September, but has since offloaded 10,922 ETH—about $31.3 million worth at today’s price—using the proceeds to accelerate share repurchases alongside a $200 million buyback program.
“Since commencing the buyback, we have repurchased 8% of our shares outstanding at a substantial discount to our net asset value while maintaining a strong ETH and cash balance,” said FG Nexus Chairman and CEO Kyle Cerminara, in a statement.
“We plan to continue buying back shares while our stock trades below NAV, which creates [an] increasingly asymptotic effect on our per-share valuation metrics as the number of shares outstanding declines and net asset value per share increases,” he added.
FG Nexus is the latest Ethereum treasury firm to offload some of its holdings to buy back shares. In October, ETHZilla (ETHZ) told shareholders that it had sold around $40 million worth of ETH to buy back shares.
Other digital asset firms like SharpLink Gaming have utilized share repurchase programs when the firm’s mNAV dipped below 1 in an attempt to benefit shareholders. A firm’s mNAV or market-to-net asset value compares the company’s market cap to the value of its holdings.
As of Wednesday, FG Nexus firm holds 40,005 ETH—about $115 million worth—and around $37 million in USDC. In total, it has repurchased around 3.4 million shares of FGNX at an average cost of $3.94.
Shares are well below that average cost now, changing hands at $2.41 at Thursday’s closing bell. FGNX has dipped nearly 37% in the last month, and is now down more than 85% in the last six months of trading. The firm's stock is down massively since jumping above the $40 mark in August.
Its current ETH treasury holdings place FG Nexus just outside the 7 largest publicly traded Ethereum treasuries.