FG Nexus Tops $85 Million Loss on Ethereum Treasury Strategy as Sales Continue
Summary
- FG Nexus said it recorded more than $85 million in losses through its Ethereum (ETH) treasury strategy.
- FG Nexus said it recovered about $83.92 million after buying 50,770 ETH at an average price of $3,860 and later selling 36,025 ETH at an average price of $2,330.
- The market sees Strategy's Bitcoin (BTC)-centered treasury strategy as a success story, while Ethereum treasury strategies are producing mixed results amid high volatility and a prolonged bearish trend.
Nasdaq-listed FG Nexus has logged more than $85 million in losses on its Ethereum treasury strategy.
Wu Blockchain reported on June 4 that FG Nexus bought a total of 50,770 ETH in August and September last year at an average price of $3,860, for roughly $196 million.
The company started selling its holdings in November last year. It has sold 36,025 ETH at an average price of $2,330, recovering about $83.92 million so far.
The spread between the purchase and sale prices puts FG Nexus's cumulative loss at more than $85 million.
FG Nexus had previously said it would use Ethereum as its primary treasury reserve asset.
Ethereum's steep decline from last year's peak has also expanded unrealized losses at companies that adopted Ethereum treasury strategies.
Market participants have viewed Strategy's Bitcoin-centered treasury strategy as a success story, while Ethereum treasury strategies have produced mixed results amid high volatility and a prolonged bearish trend.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
