Ethereum Treasury FG Nexus Offloads 10,922 ETH Amid ETH Price Crash Below $3,000

Ethereum Treasury FG Nexus shifted direction after previously signaling plans to expand its Ethereum position. The company sold part of its cryptocurrency reserves to fund a major buyback initiative. The move marked a clear departure from its earlier target of becoming a large corporate holder of Ethereum.

Ethereum Sale Fuels FG Nexus Buyback Strategy

According to a press release, the Ethereum treasury firm reported selling 10,922 ETH. The proceeds amounted to approximately $33 million at current market prices. FG Nexus also drew down $10 million on borrowed funds. The total lent financed the 3.4 million share buyback.

The buyback was for 8% of the public float. The stock was acquired at an average cost of $3.45 per share. The stock price was still below the company’s reported net asset value of $3.94 per share.

This development comes just months after the firm filed a $5 billion shelf registration with the Securities and Exchange Commission in August. That filing was based on previous plans to raise significant capital for an Ethereum acquisition. The latest activity was a departure from that strategy of accumulation.

Following this Ethereum sale, the company now holds around 40,005 ETH. Notably, this move comes amid the ETH price crash below $3,000, which has compounded the woes of these treasury companies. TradingView data shows that the second-largest crypto by market cap is down over 6% today, dropping to as low as $2,840. 

Meanwhile, it is worth mentioning that FG Nexus isn’t the first treasury company to offload some of its ETH holdings. ETHZilla had announced last month that it sold $40 million worth of ETH to fund stock repurchases.

BitMine is Sitting On $3.7 Billion In Unrealized losses

Crypto research firm 10X Research revealed in an X post that Tom Lee’s BitMine, the largest Ethereum treasury company, is currently down over $1,000 per ETH on its holdings, implying about $3.7 billion in unrealized losses. This excludes the losses the company could incur after accounting for the hefty NAV premium public-market investors paid on top of it.

Despite this, BitMine continues to accumulate more ETH. The company revealed that it bought 54,156 ETH ($169 million) last week and now holds almost 3.6 million ETH, with an average cost of around $4,000 per ETH.

Tom Lee recently commented on the crypto market crash and stressed that his long-term view on Ethereum remains unchanged. He also stated that Wall Street’s push toward an ETH supercycle remains intact.

BitMine has again accumulated ETH this week, as it continues to double down on its ETH strategy. Data from the on-chain analytics platform Arkham shows that two wallets likely linked to the Ethereum treasury company received 24,827 ETH and 21,054 ETH from BitGo and Kraken, respectively.