FG Nexus sells ETH for $32.7M amid NAV crisis

FG Nexus has sold Ethereum for $32.7m to fund a share buyback after its stock plummeted 94% in four months, highlighting the deepening Net Asset Value (NAV) crisis among digital asset treasury companies.

The sale follows ETHZilla's $40 million exit in ETH in October, underscoring growing pressures in an industry that manages more than $42.7 billion in crypto assets.

This wave of forced sales highlights vulnerabilities in the cryptocurrency corporate treasury model, as companies face shares trading below the value of their underlying holdings.

Treasury Companies Resort to Asset Sales

FG Nexus has revealed that it sold 10,922 ETH in October to support a $200 million share buyback plan. The company initiated the buyback after its stock had fallen sharply below NAV, a measure of cryptocurrency's underlying value per share.

FG Nexus Sold $32.7M in $ETH: Treasury Companies Are Starting to Sell, has declared Crypto Patel.

FG Nexus retained 40,005 ETH and $37 million in cash, with total debt rising to $11.9 million as of Wednesday.

The company repurchased 3.4 million shares at about $3.45 each, representing 8% of its outstanding shares. Management pointed out that the shares were purchased at a discount to NAV, which reached $3.94 per share in mid-November.

This strategy required about $10m of debt and a 21% liquidation of ETH's reserves from September levels. Similarly, ETHZilla announced a ETH sale of about $40 million to facilitate share buybacks, purchasing 600,000 shares for nearly $12 million since October 24, seeking relief from a persistent 30% discount to NAV.

Leverage Structures and Market Pressure

When a DAT company's shares are trading at a discount to the value of its cryptocurrencies (mNAV below 1.0), shareholders push management to realise that hidden value through a buyback.

DAT companies deployed $42.7bn in crypto in 2025, with $22.6bn accumulated in Q3 alone. This expansion was fuelled by Bitcoin's rally above $126,000 in October, but subsequent reversals have exposed weaknesses in capital structures based on leverage.

Leverage through convertible bonds and perpetual preferred stock increases selling pressure when prices fall or NAV discounts widen. The mNAV of Metaplanet, another Bitcoin-focused DAT company, fell to 0.99 before recovering to 1.03, with its shares losing 70 per cent from their June highs, signalling industry-wide stress.

Systemic Risk and Purchasing Stalemate

Market liquidity deteriorated sharply, with Bitcoin's order book depth at 1% falling from $20 million to $14 million, a 33% drop. Analysts estimate that forced sales by treasury companies could reach $4 billion to $6 billion if 10% to 15% of positions were liquidated, potentially surpassing the $2.33 billion in outflows from ETFs in November.

Damn. BitMine lost $3.7 BILLION on its massive bet on $ETH. That's the risk of being a Digital Asset Treasury (DAT) company! Question: will we see other companies attempt this route, or is this a red flashing warning for corporate cryptocurrency treasuries? ETFs on $ETH are on the horizon. L'ha detto Dr Zeus su X.

Company purchases of cryptocurrency have stalled. MicroStrategy's stock fell 60 per cent due to Bitcoin's volatility. Smaller companies, particularly those exposed to Solana, suffered NAV withdrawals of 40%.

This crisis challenges the resilience of the digital asset treasury model in prolonged downturns. The ability of these companies to maintain their cryptocurrencies without further forced liquidations will determine the future of the industry.