FG Nexus has transferred 10,000 ETH to Galaxy Digital as the Nasdaq listed company continues to unwind its Ethereum holdings after losses on its treasury strategy climbed beyond $85 million.
Key Takeaways
- FG Nexus transferred 10,000 ETH worth about $18.16 million to Galaxy Digital, according to on chain data.
- The company has recorded more than $85 million in losses on its Ethereum treasury strategy.
- FG Nexus raised $200 million in 2025 to build an Ethereum focused treasury position.
- The case highlights the risks public companies face when concentrating treasury assets in volatile cryptocurrencies.
What Happened?
FG Nexus, formerly known as Fundamental Global, is facing mounting losses from its Ethereum treasury strategy after transferring another 10,000 ETH to Galaxy Digital. The move comes as the company continues reducing a position that was built near Ethereum’s market highs in 2025.
Data tracked by on chain analytics platform Arkham indicates the latest transfer is likely tied to continued liquidation efforts. The company has already sold a significant portion of its Ethereum holdings at prices well below its original purchase cost.
FG Nexus Losses on Ethereum Treasury Strategy Top $85 Million
— Wu Blockchain (@WuBlockchain) June 4, 2026
Nasdaq-listed Ethereum treasury firm FG Nexus bought 50,770 ETH for about $196 million at an average price of $3,860 between August and September 2025, before beginning to sell in November. It has now sold 36,025 ETH… pic.twitter.com/j91JJ5jlc9
FG Nexus Continues Ethereum Liquidation
According to on chain data, FG Nexus recently moved 10,000 ETH, valued at approximately $18.16 million, to Galaxy Digital. Market observers view the transfer as a potential preparation for another sale as the company works to reduce its exposure to Ethereum.
FG Nexus accumulated roughly 50,600 ETH to 50,770 ETH during August and September 2025 after raising $200 million through a private placement backed by major crypto industry firms including Galaxy Digital, Kraken, and Hivemind Capital.
The company spent approximately $196 million to $200 million acquiring Ethereum at an average purchase price ranging between $3,860 and $3,940 per ETH. At the time, management positioned the company as an Ethereum focused public market vehicle designed to provide investors with exposure to ETH and opportunities linked to tokenization and staking.
However, Ethereum’s subsequent price decline significantly weakened the value of the treasury strategy.
Losses Continue to Grow
Arkham data shows FG Nexus has already sold approximately 38,300 ETH for around $89.17 million, with an average sale price near $2,329 per ETH.
Those sales have generated realized losses approaching $89 million. Company disclosures and treasury tracking data also indicate total losses tied to the Ethereum strategy now exceed $85 million, with some estimates placing unrealized losses near $85.9 million.
FG Nexus reported a net loss of $38.6 million during the first quarter of 2026. About $36.7 million of that figure was linked directly to realized and unrealized losses from its Ethereum holdings.
Some analysts believe losses could eventually surpass $100 million if the remaining position is liquidated at current market prices.
Corporate Ethereum Strategy Faces Pressure
FG Nexus’s experience is becoming an important case study for public companies exploring cryptocurrency treasury strategies.
Unlike diversified corporate treasuries, FG Nexus deployed nearly all of its capital raise into a single digital asset over a relatively short period. The company did not publicly disclose a major hedging strategy or broader diversification plan, leaving it heavily exposed to Ethereum’s price movements.
The situation also highlights some of the unique challenges associated with Ethereum treasury models. While Bitcoin treasury strategies are often built around long term reserve accumulation, Ethereum based strategies depend on additional factors such as staking rewards, network activity, decentralized finance adoption, tokenization growth, and investor confidence in the broader ecosystem.
When Ethereum prices fall sharply, potential income from staking can be overwhelmed by losses in the underlying asset value.
Broader Implications for Public Companies
The losses at FG Nexus arrive as more public companies evaluate treasury strategies involving Ethereum, Solana, and other digital assets. Supporters argue these assets provide exposure to emerging blockchain infrastructure and on chain financial systems.
However, FG Nexus demonstrates the risks associated with timing, concentration, and volatility. A large purchase near market highs can create significant balance sheet pressure if prices decline.
Investors are also watching whether the company’s continued sales and transfers to Galaxy Digital signal further reductions in its Ethereum exposure. At the same time, Galaxy Digital’s involvement may indicate that some institutional investors continue to view current ETH prices as attractive despite recent market weakness.
CoinLaw’s Takeaway
In my experience, the biggest lesson from the FG Nexus story is not whether Ethereum is a good or bad asset. The real lesson is that risk management matters just as much as conviction. I found that many corporate crypto strategies look attractive during bull markets, but concentration in a single volatile asset can quickly become a problem when market conditions change. FG Nexus’s losses show that entry price, position sizing, and treasury discipline can be just as important as the long term investment thesis itself.
