Ethereum Treasury Firms Face Crisis as Stocks Plunge Below Asset Value

TLDR

• FG Nexus sold 10,922 ETH worth $32.7 million to fund a $200 million share buyback program after its stock fell 94% in four months
• The company bought back 3.4 million shares at $3.45 each, representing 8% of outstanding shares, while shares traded below net asset value of $3.94
• ETHZilla previously sold $40 million in ETH in October to fund its own share repurchases
• Digital asset treasury companies manage over $42.7 billion in crypto assets but face pressure as stocks trade below underlying asset values
• FG Nexus now holds 40,005 ETH and $37 million in cash with total debt at $11.9 million

FG Nexus disclosed the sale of 10,922 ETH tokens in October to support a share buyback program. The Ethereum-focused treasury company made the announcement on Thursday after its stock experienced a steep decline.

FG Nexus Inc., FGNX

The firm used proceeds from the ETH sale along with $10 million in borrowed funds to repurchase shares. The total buyback reached approximately $33 million at current prices. FG Nexus bought back 3.4 million shares at an average price of $3.45 per share.

This represents about 8% of the company’s outstanding shares. Management stated the shares were purchased at a discount to the net asset value, which stood at $3.94 per share by mid-November.

The company’s stock had fallen 94% over four months before the buyback program began. FG Nexus shares remain more than 95% lower from their peak last summer. The stock opened 2% higher on Thursday following the disclosure.

FG Nexus now holds approximately 40,005 ETH in its treasury. The company also maintains $37 million in cash and USDC stablecoin reserves. Total debt rose to $11.9 million as of Wednesday.

Similar Moves in the Sector

ETHZilla, another Ethereum treasury company, sold roughly $40 million in ETH during October. The firm used the proceeds to facilitate its own share repurchase program. ETHZilla bought 600,000 shares for nearly $12 million starting October 24.

The company’s stock traded at a 30% discount to net asset value. This gap between market price and underlying crypto holdings created pressure on management to act.

Digital asset treasury companies accumulated $42.7 billion in crypto during 2025. The sector deployed $22.6 billion in the third quarter alone. These firms now account for 0.83% of total crypto market capitalization.

The liquidation by FG Nexus represented 21% of its ETH reserves compared to September levels. Chairman and CEO Kyle Cerminara stated the company plans to continue buying back shares while the stock trades below net asset value.

Market Response and Holdings

Ethereum prices dropped about 2% immediately following the FG Nexus announcement. Bitcoin also slipped roughly 1% before both cryptocurrencies recovered some losses.

Metaplanet, a Bitcoin-focused treasury company, saw its market-to-net-asset-value ratio drop to 0.99 before recovering to 1.03. The company’s shares have lost 70% since June highs.

When treasury company shares trade below the value of crypto holdings, shareholders push for buybacks. Companies without sufficient cash reserves must sell crypto assets to finance these repurchases. The strategy aims to close the gap between stock price and underlying asset value.

FG Nexus used debt financing for part of its buyback program. The company borrowed $10 million to supplement the ETH sale proceeds. This increased the firm’s total debt position while reducing its crypto holdings.

The buyback creates what management described as an “increasingly asymptotic effect” on per-share valuation metrics. As outstanding shares decline, net asset value per share rises for remaining shareholders.

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