FG Nexus incurred losses exceeding $85 million on its Ethereum treasury strategy after buying the cryptocurrency near price highs in 2023 and selling at lower prices. The company had allocated $196 million to ether, meaning the loss represents a big chunk of its original capital. The incident underscores the volatility risks public companies face when adopting crypto as a reserve asset.
The $196 million gamble
FG Nexus bet big on Ethereum. The firm poured close to $200 million into the digital asset, but the trade went south fast. Purchases near 2023's highs left the position vulnerable when prices dropped. Selling at lower levels locked in the loss, turning a strategic allocation into a serious hit to the balance sheet.
Why the timing mattered
The company bought ETH when the market was frothy — near that year's peak. Instead of riding out the downturn, it exited at lower prices. The exact timing of the sales wasn't disclosed in the facts, but the result is clear: a loss of more than $85 million on a single crypto bet. That kind of whipsaw is hard for any treasury to stomach.
A cautionary tale for corporate treasuries
FG Nexus isn't alone in trying to put crypto on the balance sheet. A handful of public firms have done the same. But this loss shows how quickly things can turn. The $85 million hole — about 43% of the initial ether outlay — is a stark reminder that volatile assets don't play nice with reserve accounting. The company’s experience may give other boards pause before loading up on ETH.
The loss is already real. Whether FG Nexus changes its approach to crypto treasuries isn't known, but the bill has come due.
