Key facts
- FG Nexus has lost over $85 million on its Ethereum treasury strategy.
- The company purchased Ether near its previous highs.
- A substantial part of the ETH position was sold at lower prices.
- The losses highlight risks for public companies holding Ether as a reserve asset.
FG Nexus has experienced significant financial setbacks with its Ethereum treasury strategy, reporting losses that exceed $85 million. The company's approach involved acquiring Ether at prices near its peak from the previous year. Subsequently, FG Nexus sold a considerable portion of its Ether holdings at prices lower than its purchase price, leading to the substantial financial deficit. This situation brings to light the inherent pressures and risks associated with public companies that have chosen to incorporate Ether as a reserve asset within their financial operations. The initial investment in Ethereum by FG Nexus reportedly amounted to $196 million.