Key Takeaways:
- FG Nexus realized over $85M in losses on its $196M Ethereum bet
- The firm bought 50,770 ETH near $3,860 and sold near $2,300
- Total losses may exceed $100M as liquidation continues
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FG Nexus loses $85M on Ethereum as corporate treasury bet backfires
FG Nexus realized over $85 million in losses on its $196 million Ethereum treasury bet, on-chain data shows, as the Nasdaq-listed company unwinds a concentrated position that has become a warning for corporate balance sheets.
Galaxy Digital, which participated in the original private placement that funded the purchases, was among the buyers of FG Nexus's recent 10,000 ETH sale valued at approximately $18.16 million, according to on-chain data. The firm also offloaded an additional $17.8 million in ether as total losses topped $100 million.
The company, trading under the ticker FGNX, purchased roughly 50,770 ETH between August and September 2025 at an average price of about $3,860 per token, according to its financial disclosures. It has since been selling those holdings at dramatically lower prices, with recent transactions averaging around $2,300 per ETH — a roughly 40% discount to its cost basis. FG Nexus's Q1 2026 earnings showed a net loss of $38.6 million, with approximately $36.7 million stemming directly from realized and unrealized losses on its Ethereum position.
The $200 million private placement that funded the purchases was backed by Galaxy Digital, Kraken, and Hivemind Capital. On-chain analytics tracked significant outflows from wallets associated with FG Nexus, including the transfer of 10,000 ETH to Galaxy Digital. Some analysts now project total losses could exceed $100 million before the company fully unwinds its holdings. The episode is likely to make corporate treasuries significantly more cautious about concentrated crypto positions, particularly those lacking hedging strategies or exit plans.
This article is for informational purposes only and does not constitute investment advice.
