A Nasdaq-listed company’s bet on Ethereum as a corporate treasury asset has gone disastrously wrong.
FG Nexus, the firm formerly known as Fundamental Global that now trades under the ticker FGNX, has disclosed cumulative realized losses exceeding $85 million on its Ethereum treasury strategy after buying ETH near last year’s highs and selling most of the position into this year’s weakened market.
On-chain data shared by Lookonchain shows the company sold 36,025 ETH for approximately $83.92 million — a stark admission that its experiment with crypto as a primary reserve asset has backfired.
How the $196 Million Trade Unraveled
FG Nexus acquired 50,770 ETH between August and September 2025 when optimism around crypto institutional adoption was near its peak. The average purchase price was $3,860 per token, meaning the company committed roughly $196 million to what it described as its “primary treasury reserve asset.”
The bet reflected a growing trend of public companies treating Ethereum as a strategic balance-sheet asset, similar to how MicroStrategy (now Strategy) positioned Bitcoin. But the market dynamics for ETH have been far less forgiving.
The company began selling ether in November 2025 as prices started to soften. The latest tranche — 36,025 ETH — was liquidated at an average price of $2,330 per token, well below the purchase price.
“That’s a 40% loss on the sale alone,” said Jeff Dorman, chief investment officer at Arca. “When you layer in the unrealized losses on the remaining holdings, the total damage is north of $85 million. For a company of this size, that’s a real hit to shareholder equity.”
A Cautionary Tale for Corporate Crypto Treasuries
FG Nexus’s losses highlight a risk that corporate treasurers have grappled with since companies first started putting digital assets on balance sheets: volatility cuts both ways.
The company’s decision to designate ETH as its primary treasury reserve asset meant its financial health became tightly coupled to Ethereum’s price. When ETH rallied to $4,800 in late 2024 and held above $4,000 through mid-2025, the strategy looked prescient. But the bear market of 2026 has been brutal for altcoins.
Ethereum is currently trading at approximately $1,670, down more than 65% from its all-time high. The broader market downturn, catalyzed by Middle East geopolitical tensions, U.S. regulatory uncertainty, and a capital rotation toward artificial intelligence, has punished every non-Bitcoin crypto asset.
“Companies need to ask themselves whether they’re running a business or a crypto fund,” said Dorman.
Staking: The Escape Hatch?
Ethereum staking has emerged as a potential mitigation strategy for corporate holders. Data from Everstake — a major staking provider — suggests that an increasing number of firms holding ETH are turning to staking yields to offset price declines.
Current Ethereum staking yields hover around 3-4% annually. While modest, that yield can meaningfully offset losses on large holdings during bear markets.
“If FG Nexus had staked its ETH, the yields would have softened the blow,” said Bogdan Dyak, head of business development at Everstake. “Not enough to prevent the losses, but enough to reduce the urgency to sell.”
What Happens Next
FG Nexus’s remaining ETH position is unclear from public disclosures. The company reported a net loss of $38.6 million during the first quarter of 2026, driven primarily by its crypto holdings.
For the broader market, the sell-off adds another layer of supply pressure on an already weakened Ethereum price. The 36,025 ETH dump is significant relative to daily exchange volumes but not enough to single-handedly drive price action.
More concerning is the signal it sends to other corporate treasurers considering similar strategies.
“One high-profile failure won’t kill the corporate crypto thesis,” said one anonymous fund manager who spoke on condition of anonymity. “But it will make CFOs think twice before putting shareholder capital into anything except Bitcoin.”
Ethereum was trading at $1,669 at press time, down 5.2% in the last 24 hours.
Frequently Asked Questions
How much ETH does FG Nexus still hold?
The company’s remaining position is unclear. It purchased 50,770 ETH total and has now sold 36,025 ETH, leaving approximately 14,745 ETH potentially still on the balance sheet at current valuations.
Is this the largest corporate ETH loss ever?
It ranks among the most significant public-company losses on Ethereum, though several private funds have suffered larger proportional losses during the current bear market.
Should companies still hold crypto on their balance sheets?
The answer depends on risk tolerance and treasury objectives. Bitcoin-focused corporate strategies have performed differently than ETH-focused strategies. Most analysts recommend that crypto allocations remain a small percentage of total treasury assets.
