FG Nexus shares fell by over 7% after the company sold its Ethereum stash

FG Nexus, a treasury company focused on holding and accumulating ETH and real-world asset tokenisation, has announced in its 20 November 2025 shareholder update that the company sold 10,922 ETH.

The proceeds, along with a loan of approximately $10 million, were used to repurchase approximately 3.4 million common shares at an average price of around $3.45 per share, representing approximately 8% of the company’s current share count. The company says that the buyback is part of a board-approved $200 million share repurchase programme. FG Nexus (FGNX) shares slid over 7% after news broke that it sold some of its Ethereum stash to fund a share buyback.

When the shares of a DAT company sell at a discount to the value of its crypto holdings (mNAV below 1.0), shareholders drive the management to act upon that hidden value. The most effective way to achieve this is through a stock buyback; however, generating the necessary funds to buy back the stock requires a significant amount of cash. If the company does not have sufficient cash, it will need to sell part of its cryptocurrency assets to fund the buyback.

FG Nexus fights to regain investor confidence

In July, the firm pulled in $200 million through a private placement to initiate its ETH treasury strategy plan. By late September, the firm had accumulated over 50,000 ETH, but later sold 10,922 ETH, roughly $31.3 million at current prices, to speed up its share buybacks under a $200 million program.

The company’s chairman and CEO, Kyle Cerminara, even commented, “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.”

He also insisted that the company will continue to pursue buybacks when the stock is trading below NAV, since each additional repurchase improves per-share metrics more sharply.

FG Nexus has joined other Ethereum treasury firms selling some ETH to support buybacks. ETHZilla (ETHZ) revealed in October that it sold approximately $40 million worth to support its own program.

Similar to SharpLink Gaming, other digital assets companies also conducted buybacks after the market net asset value (mNAV) fell below 1, to increase shareholder returns.

As of Wednesday, FG Nexus had a total of 40,005 ETH (approximately $115 million) and a USDC holding of $37 million. To date, it has repurchased around 3.4 million FGNX shares at an average price of $3.94.

As of Thursday’s close, the company changed hands at $2.41, significantly below the average repurchase price. The stock has also fallen nearly 37% over the past month and more than 85% over the past six months. Still, FG Nexus currently sits just shy of the top seven publicly traded Ethereum treasuries with its ETH stash.

FGNX shareholders have the option to exchange their stock for Ethereum-based ERC-20 tokens

FG Nexus Inc. began issuing SEC-registered common and preferred shares directly on the Ethereum blockchain. Through its Securitize partnership, shareholders can now swap traditional stock for on-chain versions with instant settlement and programmable dividends.

Ideally, shareholders can swap their stock for Ethereum-based tokens under ERC-20-like smart contracts. The tokens carry identical legal rights and CUSIPs as regular shares, enabling direct on-chain settlement and programmable features such as dividends, compliance, and voting, all of which are fully SEC-compliant.

The company has also been selling off back-end businesses, including reinsurance, through crypto-first efforts such as asset tokenization, merchant banking, and smart contract settlements. CEO Cerminara and Maja Vujinovic, the head of Digital Assets, still see Ethereum as the foundation for the next generation of financial settlement. Their tokenization efforts reflect the idea that public blockchains will form the backbone of future capital markets.

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