FG Nexus, formerly Fundamental Global, has completely abandoned its Ethereum treasury strategy, launched eleven months ago, marking one of the fastest and sharpest reversals in the institutional crypto treasury trend.

According to an SEC filing dated August 12, the company sold all of its digital assets before June 30 and had no crypto assets at the end of the quarter. The company announced this Ethereum strategy in July 2025 and effectively implemented it in August, accumulating over 50,000 ETH at its peak. The figures are truly striking: gross cash from ETH sales during the first half reached $60.956 million, plus a separate receivable of $14.983 million as of June 30, which was collected in July. It's important to emphasize that these figures represent gross sales revenue and not profit.

There are two separate loss items, and it's crucial not to confuse them. The company reported an operating loss of $45.207 million stemming from its halted digital asset operation, with a separate item showing a $41.167 million ETH loss. Income from staking was only $144,000, representing just about 0.3% of the total $45.2 million loss, meaning staking revenue was far from offsetting the overall loss.

This final step is the last in a months-long phased exit process. In February, the company sold another 7,550 ETH, increasing its total realized loss to approximately $82-87 million. At that time, the position was built at an average cost of $3,860 and came under significant pressure as ETH fell below $2,000. In November 2025, it also sold 10,922 ETH to finance share buybacks. Therefore, this is not a one-off panic sale, but the natural result of a months-long, phased liquidation process.

The company's board of directors formally approved a decision in June to reduce digital asset exposure and exit the business entirely. The company's current focus has shifted to the tokenization of real-world assets, including mobile home parks, and residential development, expanding its previously partial real estate and equity investments.

This development is not an isolated case, but part of a broader pattern. Around the same time, another Ethereum treasury company, ETHZilla, lost approximately 97% of its value from its peak after Peter Thiel's Founders Fund sold its entire stake, forcing it to dispose of $74.5 million worth of ETH to repay convertible debt. Similar pressures exist on the Bitcoin side; Metaplanet was accused of concealing the extent of Bitcoin losses from shareholders, while Strategy became the most shorted large-cap stock in the US, according to Goldman Sachs data.

For those following institutional crypto treasury companies through Gate, the key point is that the FG Nexus story concretely demonstrates how insufficient staking yield can be to offset the devaluation of a large-scale treasury position built on leverage or at peak price. The forced sell-off by such companies under quarterly reporting pressure contrasts sharply with large wallets holding long-term positions becoming net buyers during the same period. Whether this divergence continues in the coming quarters will remain the key indicator of the institutional treasury model's resilience during times of crisis.

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