FG Nexus discloses 37,594 ETH and repurchases $32 million worth of stock: The dilemma faced by treasury companies

Nasdaq-listed Ethereum treasury company FG Nexus recently disclosed its latest financial status, holding 37,594 ETH, with an outstanding debt of $1.9 million, while announcing a stock buyback of over $32 million. However, behind this seemingly ordinary financial report lies a deeper dilemma faced by this publicly listed treasury company: being forced to sell coins while attempting to boost the stock price through buybacks.

Financial Status: Adequate Assets but Worrisome Stock Price

According to the latest disclosure, FG Nexus’s financial structure is as follows:

It appears that the company has substantial assets, but the problem is that its mNAV (market net asset value) has fallen below 1, at just 0.84. This means the company’s market capitalization is now lower than the value of its ETH holdings, an intuitive signal that the treasury company is in trouble.

Root of the Dilemma: Chain Reaction from ETH Price Decline

Poor Timing of Position Building

FG Nexus reserved 50,770 ETH between August and September 2025 at an average price of $3,944, totaling about $200 million. However, this decision seems unlucky—coinciding with ETH’s high-price range. According to the latest data, ETH’s current price is $2,915.38, down about 26% from the purchase price.

Pressure to Reduce Holdings

Due to the ETH price decline, FG Nexus’s unrealized losses are becoming apparent. On-chain data shows the company has reduced its ETH holdings by 13,475 coins, selling at an average price of $3,089, realizing a loss of $11.52 million. The most recent sale was on January 20th, when 2,500 ETH were sold for $8.04 million. This ongoing reduction is not an active choice but is driven by the “curse” of an mNAV below 1—when the stock price falls below net asset value, market confidence in the treasury company wavers, leading to selling pressure.

Buyback Strategy: Effort to Turn the Tide

In this context, FG Nexus’s $32 million buyback plan becomes more meaningful. By repurchasing a large amount of its own stock (especially the 9.9 million common shares), the company aims to reduce the circulating shares to increase the net asset value per share, thereby improving this key metric.

This is a classic financial maneuver: when the stock price is below net assets, buybacks can dilute the asset base per share, theoretically boosting mNAV. However, the effectiveness of this strategy ultimately depends on ETH’s price performance—if ETH continues to decline, even extensive buybacks may not reverse the situation.

A Microcosm of Market Difficulties

FG Nexus’s predicament reflects the common challenges faced by treasury companies in a bear market. According to related reports, many small companies that transitioned into “treasury” firms during last year’s DAT craze are now facing mNAV well below 1 and are forced to sell coins. This could create a feedback loop: treasury companies selling coins increase market pressure, further lowering ETH prices, which worsens their own book performance.

Summary

FG Nexus’s latest disclosure reveals the real difficulties faced by publicly listed treasury companies during market downturns. Holding $120 million worth of ETH assets seems sufficient, but when the stock market value drops below these assets, the company becomes passive. On one hand, it is forced to sell coins to cope with market pressure; on the other, it tries to boost the stock price through buybacks—this dilemma tests the resilience of the treasury company model in the crypto market. The future performance of such companies largely depends on whether ETH can regain the $3,944 key level; otherwise, the vicious cycle of paper losses and market pressure may continue to unfold.