FG Nexus Sells 10,922 ETH to Buy Back Shares
FG Nexus, an Ethereum treasury firm, has sold 10,922 ETH to buy back shares. The company purchased 3.4 million shares at $3.45 each. This price is below their net asset value (NAV) per share of $3.94. FG Nexus used the ETH sale proceeds and a $10 million loan for the buyback.
Kyle Cerminara, FG Nexus CEO, said the company repurchased 8% of its shares at a deep discount. He added they maintain a strong ETH and cash balance. FG Nexus had planned to raise $5 billion to increase ETH buying in August but scaled back after shares dropped nearly 95% from their August peak of $38.30. The stock fell about 10% on Thursday.
Cerminara said the buyback will continue while the stock trades below NAV. This could increase the company’s value per share as shares decrease.
DATs Market Weakness Hits ETH Treasuries
FG Nexus is the second Ethereum treasury firm to sell assets for share buybacks. In October, ETHZilla sold $40 million worth of ETH for the same reason. Digital asset treasuries (DATs) have faced challenges amid weak crypto prices and risk-off sentiment.
Many DAT firms have seen shares drop over 90%, falling below their NAV. Last week, K33 reported this is due to ongoing dilution, a crowded DAT market, and weak demand. K33 also predicted the DAT market will consolidate with larger firms buying smaller rivals.
As of this week, FG Nexus holds 40,005 ETH and $37 million in cash and USDC. The largest ETH treasury is BitMine, with 3.56 million ETH.
Ethereum Price Pressure at $2,850 Support
Ethereum saw $170 million in liquidations in the past 24 hours, with $142.8 million from long positions, according to Coinglass. ETH faces strong pressure near the $2,850 support level. A drop below $2,850 could push the price down to around $2,300.
On the upside, ETH needs to rise above $3,100 and pass the 20-day Exponential Moving Average (EMA) to aim for $3,470. The Relative Strength Index (RSI) and Stochastic Oscillator show ETH is oversold. This indicates strong bullish momentum but could also trigger a short-term price reversal.
