Shocking 16.7% Drop: FG Nexus Inc. Plunges After Bold Ethereum Treasury Move
In a dramatic turn of events, FG Nexus Inc. (formerly Fundamental Global Inc.) saw its shares nosedive 16.7% in pre-market trading following its controversial decision to allocate $200 million to an Ethereum treasury. This bold move marks one of the most significant corporate crypto investments of 2025 – but why are investors panicking?
FG Nexus Bets Big on Ethereum: Genius or Gamble?
The rebranded company announced on July 9, 2025 its ambitious plan to:
- Issue 40 million prefunded warrants at $5 each
- Convert $200 million into Ethereum holdings
- Generate yield through staking and long-term appreciation
Market Reacts Violently to Ethereum Treasury Shift
The stock has suffered two major blows since the announcement:
| Date | Drop | Trigger |
|---|---|---|
| July 20 | 13% | Initial strategy reveal |
| July 31 | 16.7% | Pre-market trading reaction |
Why Crypto Investment Strategies Divide Traditional Investors
FG Nexus’s leadership defends the move, citing:
- Ethereum’s growing institutional adoption
- The potential of decentralized finance (DeFi)
- Diversification beyond traditional assets
The Future of Corporate Crypto Investment
This development signals a broader trend of public companies embracing blockchain assets, despite market volatility. FG Nexus’s experiment could pave the way for more hybrid financial models.
FAQs
Q: Why did FG Nexus rebrand?
A: The name change reflects their strategic shift toward blockchain and decentralized technologies.
Q: How will the Ethereum treasury generate returns?
A: Through staking rewards and potential appreciation of ETH value over time.
Q: Are other companies making similar moves?
A: Yes, but FG Nexus’s $200M commitment is among the largest by a public company.
Q: Should investors be worried about the stock drop?
A: Volatility is expected with major strategic shifts; long-term performance will depend on Ethereum’s adoption.
