FG Nexus liquidated its crypto reserve: 50,000 ETH sold at a loss of $45 million
Nasdaq-listed company FG Nexus has made a radical decision: to fully exit digital assets and wind down its Ethereum strategy, which lasted less than a year. This is a striking example of how even institutional players are not immune to cryptocurrency market volatility and are forced to lock in significant losses.
At the peak of its entry into the industry, the fund managed 50,000 ETH. However, reality proved harsh: in the first half of the year, token sales brought in only $60.96 million in cash, with an additional $14.98 million credited to accounts in July. The final loss from the entire operation amounted to a hefty $45.2 million. For comparison, staking income over the entire period was negligible—just $144,000—highlighting the imbalance between expectations and actual returns.
Notably, FG Nexus did not merely exit its positions but fundamentally revised its investment philosophy. All freed-up capital will now be directed into the traditional real estate sector. This decision signals growing caution among public companies that previously sought to diversify assets through cryptocurrencies but encountered market unpredictability.
From my expert perspective, this case is not just an isolated failure but an important marker for the industry. It demonstrates that institutional adoption of ETH requires more mature risk management and hedging strategies, rather than simple token accumulation. Until the market offers stable tools for capital protection, we will continue to see such players retreating into more understandable assets.