FG Nexus exits ETH treasury after $45.2M loss

FG Nexus sold all of its digital assets before June 30, ending an Ethereum treasury strategy less than a year after it launched. 

The Nasdaq-listed company disclosed the completed exit in its Aug. 12 filing, which reclassified the digital asset business as discontinued operations.

The filing shows that FG Nexus received $60.956 million in cash from ETH sales during the first half of 2026. A further $14.983 million remained receivable at June 30 and was collected in July. The company held no cryptocurrency at quarter end.

FG Nexus records $45.2M loss from digital asset exit

FG Nexus reported a $45.207 million loss from its discontinued digital asset operations for the first six months of 2026. The total included a $41.167 million loss on ETH digital assets, a $2.793 million impairment on digital intangible assets and $1.789 million in general and administrative expenses.

Those figures matter because the $45.207 million should not be described as the realized loss from selling ETH alone. The business also recorded a $398,000 gain on digital intangible assets and only $144,000 of staking revenue. Its broader consolidated net loss for the first half reached $56.928 million.

In addition, FG Nexus announced its Ethereum treasury strategy in July 2025 and said its digital asset business began in August. By Sept. 28, the company reported holding 50,770 ETH, valued at about $207 million using its reference price at the time, with an average purchase price near $3,860.

As previously reported, FG Nexus raised $200 million while making Ethereum its primary treasury asset, with plans to generate returns through staking and other Ethereum opportunities. By June, however, the company was unwinding that position. Crypto.news later reported that FG Nexus moved another 10,000 ETH as its treasury losses widened.

Cash from ETH sales is being redirected toward real estate

FG Nexus announced on July 1 that its board had authorized management to exit digital assets and create a real estate operating subsidiary focused mainly on land lease manufactured housing properties. CEO Kyle Cerminara said the company intended to “reallocate all of our capital from digital assets to cash flow producing real estate over the near term.” That remains a forward-looking company plan.

The company is also considering a potential combination with FG Communities, but the quarterly filing says board discussions remain preliminary and no decision or definitive agreement has been reached. An independent special committee is reviewing the potential transaction and has retained a financial adviser to provide a fairness opinion.

The ETH liquidation has increased available cash. FG Nexus reported $24.9 million of cash and equivalents at June 30. After receiving the ETH sale receivable and $15.5 million from the redemption of FG Merger II shares, cash reached approximately $51.4 million by July 31.

What happens next for FG Nexus

The next test is whether FG Nexus can turn that liquidity into income-producing property assets. The company has not announced a definitive FG Communities transaction or disclosed completed acquisitions under the new manufactured housing strategy. Its existing Quebec property also remains held and used after an earlier nonbinding sale proposal became unlikely to close.

FGNX traded at $7.59 on Aug. 13, up about 8.9% from the previous close. The company had already announced its crypto exit on July 1, however, so the move cannot be attributed solely to the later quarterly disclosure.

The reversal closes a short corporate Ethereum experiment that once aimed to make FG Nexus a major ETH holder. It also shows the financial tradeoff in this particular treasury strategy: first-half staking generated $144,000, while the discontinued digital asset operation recorded a $45.207 million loss.