FG Nexus has abandoned its Ethereum treasury strategy less than a year after launch, redirecting its focus toward real estate development.
In an Aug. 12 SEC filing, the Nasdaq-listed merchant bank disclosed that it sold all of its digital assets before June 30 and held no cryptocurrency at quarter-end.
FG Nexus, previously known as Fundamental Global, announced its Ethereum treasury strategy in July 2025 and launched the digital-asset operation the following month. At its peak, the firm held more than 50,000 ETH.
However, the firm began divesting the holdings this year amid a broader market contraction that significantly impacted digital asset treasury companies.
Ethereum staking returns fail to offset losses
The exit exposed how little staking income offset the losses generated by the company’s Ethereum-focused strategy.
FG Nexus recorded just $144,000 of staking revenue during the first half, equivalent to roughly 0.3% of the $45.207 million loss from its discontinued digital-asset operations.
That loss included a $41.167 million loss on ETH digital assets, $2.793 million of impairment on digital intangibles, and $1.789 million of general and administrative expenses, partly offset by a $398,000 gain on digital intangibles and the staking revenue.
The $45.207 million therefore represents the overall loss from the discontinued operation rather than a realized loss from selling Ethereum alone. Notably, this contributed to FG Nexus’s wider deterioration during the period as it reported a consolidated net loss of about $56.9 million for the first half of the year.
Meanwhile, the ETH liquidation returned substantial cash to the company’s balance sheet.
FG Nexus reported $60.956 million in cash proceeds from ETH sales during the first half and another $14.983 million receivable from digital-asset sales as of June 30, which it collected in July.
Those figures represent gross sale proceeds rather than profits generated from ETH sales.
FG Nexus pivots toward housing
With its ETH holdings divested, the company board is shifting focus toward real estate.
The company said in July that it planned to establish an operating subsidiary focused primarily on land-lease manufactured-housing properties. It is also evaluating a potential combination with FG Communities as a route into income-producing affordable housing.
Kyle Cerminara, Chairman & CEO of FG Nexus, said:
“We believe manufactured housing represents one of the most compelling combinations of durable cash flow, intrinsic asset value, and long-term demand tailwinds in the United States. We have identified a solid pipeline of target properties to begin acquiring while we also continue to advance the previously announced potential acquisition of FG Communities. Our intent is to reallocate all of our capital from digital assets to cash flow producing real estate over the near term.”
That transaction remains preliminary. A special committee is still reviewing the proposal, and no definitive agreement has been reached.
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