FG Nexus sells all Ethereum at $45M loss, pivots to housing

FG Nexus sold all its Ethereum for $61 million in the first half of 2026, booking a $41.2 million loss on the digital asset as it pivots to real estate.

The liquidation is confirmed in the company's 10-Q filed with the SEC on Aug. 12, which shows the Nasdaq-listed firm (FGNX) held zero crypto assets at quarter-end.

The company earned just $144,000 in staking rewards during its ETH holding period, while a separate $2.8 million impairment hit its wstETH position. The digital asset exit contributed to a consolidated net loss of $56.9 million for the six months ended June 30, alongside an $11.2 million impairment on its Saltire equity method investment.

Proceeds from the ETH sale — including a $15 million receivable collected in July — lifted cash to $24.9 million at quarter-end and roughly $51.4 million by July 31. The company is evaluating a potential business combination with FG Communities to build an income-producing affordable housing platform, and has repurchased about 1.5 million common shares for $15.3 million in the first half.

The ETH exit marks a sharp reversal for FG Nexus, which adopted Ether as its primary treasury asset in August 2025 following a private placement. The company's digital asset operations produced a $45.2 million operating loss in the first half of 2026, including the $41.2 million loss on ETH and the wstETH impairment. Total liabilities fell to $5.2 million from $20.4 million at year-end 2025, while stockholders' equity dropped to $64.1 million from $143.5 million.

The company also sold its reinsurance business in early 2026, recognizing a $1.6 million gain, and transferred legacy assets into a contingent value rights trust. A 1-for-5 reverse stock split took effect Feb. 13, reducing common shares outstanding to about 5.1 million as of Aug. 7.

Real estate pivot

FG Nexus's board formed a special committee of independent directors in April to evaluate a potential business combination with FG Communities, a self-managed real estate company focused on manufactured housing communities. The committee has retained an independent financial advisor to provide a fairness opinion. Management has also been authorized to reallocate capital to real estate acquisitions.

The company invested $15.5 million in FG Merger II Corp. shares during the second quarter, which were redeemed for approximately $15.5 million in cash after the SPAC's merger with BOXABL in July. A related forward purchase agreement derivative contributed a $0.7 million gain.

The contrast between the $45 million loss on digital assets and the $144,000 in staking rewards highlights the poor economics of the ETH treasury experiment. For crypto investors, FG Nexus's exit represents a notable institutional retreat — a company that embraced ETH as a corporate treasury asset and then abandoned it at a substantial realized loss. The pivot toward income-producing real estate shows where management sees better risk-adjusted returns.

This article is for informational purposes only and does not constitute investment advice.