Ethereum Firm Dumps Millions in Crypto to Save Its Sinking Stock

FG Nexus, a company heavily invested in Ethereum (ETH), has sold off approximately $31 million worth of ETH (around 10,922 ETH). This move comes as the company's stock has been struggling, dropping more than 7% in a single day.

Stock Performance Dive

• 1-Month Loss: Nearly 37%
• 6-Month Loss: Over 85%
• August High: Stock was trading above $40
• Current Price: Struggling at $2.41

Why Sell Ethereum?

FG Nexus plans to use the proceeds to buy back its own shares, a strategy aimed at boosting the value of remaining shares. CEO Kyle Cerminara stated that the company has already repurchased 8% of outstanding shares at a price significantly lower than its net asset value. They intend to continue buying back shares as long as the stock trades below its net asset value.

Not the Only One

Other firms, such as ETHZilla and SharpLink Gaming, have also sold Ethereum to repurchase shares. This tactic is common when a company's market value is lower than its asset value.

Remaining Holdings

Despite the sell-off, FG Nexus still holds:

• 40,005 ETH (worth around $115 million)
• $37 million in USDC
• 3.4 million shares repurchased at an average cost of $3.94

Will It Work?

Share buybacks can signal confidence in the company's future, but with the stock continuing to drop, this remains a risky move. Only time will tell if this strategy pays off.