Ethereum News: Another Treasury Firm Sells Its ETH Amid Plunging Stock Price

FG Nexus (FGNX), a digital asset treasury firm focused on Ethereum, has sold over 10,922 ETH, valued at approximately $33 million, to fund a buyback of its shares. This action comes in response to the company's stock price falling below the net asset value of its underlying holdings, similar to fellow firm ETHZilla, which also conducted a significant token sale for share repurchase recently. With the raised funds and an additional $10 million in borrowed capital, FG Nexus aims to repurchase 3.4 million shares, representing around 8% of its float, at an average price of $3.45, below the reported NAV of $3.94 per share. Following the news, Ethereum prices dipped by about 2% before recovering slightly. FG Nexus now holds approximately 40,000 ETH and $37 million in cash and USDC. The strategy of share buybacks for digital asset treasury firms raises questions regarding their long-term viability as they liquidate core assets to maintain stock value amid volatile market conditions.

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