FG Nexus Faces $80 Million Loss After Ether Liquidation
By John Nada·Feb 26, 2026·5 min read
FG Nexus has liquidated 7,550 ETH, incurring over $80 million in losses as Ether prices decline sharply. This reflects broader challenges faced by crypto treasury strategies.
FG Nexus has liquidated another 7,550 ETH, amounting to about $14 million, as its losses on Ether positions continue to mount. This latest sale is part of a series of transactions that have resulted in over $80 million in losses, stemming from an aggressive accumulation strategy near 2025 highs. According to onchain data from Arkham, the company had built a position of 50,770 ETH, worth approximately $196 million, at an average price of $3,860 per coin between August and September 2025.
The decision to liquidate this significant portion of their Ether holdings is a clear indication of the severe pressures that FG Nexus faces in the current market landscape. As the price of Ether experienced a drastic downturn, falling from over $4,600 in October 2025 to around $2,700 in November, the company was forced to reevaluate its strategy. The aggressive accumulation of Ether, which initially seemed promising, has now turned into a financial burden. The volatility of cryptocurrency markets is particularly evident in this case, as rapid price fluctuations can lead to substantial financial repercussions for companies heavily invested in digital assets.
FG Nexus has sold just over 21,000 ETH for about $55 million, locking in significant losses. The company's financial struggles are further highlighted by a staggering 52% drop in its share price over the past month, reflecting investor anxiety about its future prospects and the overall crypto market health. Despite these challenges, FG Nexus remains one of the largest publicly traded holders of ETH, with 37,594 ETH still in its treasury. This positions the company uniquely, but it also raises concerns about the sustainability of its remaining holdings in a volatile market.
The backdrop of this liquidation reflects broader trends in the cryptocurrency market. FG Nexus is not alone in facing financial strain from the declining Ether market. Other companies that have also ventured into aggressive Ether accumulation strategies are now grappling with significant losses. Bitmine Immersion Technologies, for example, stands as the largest listed ETH holder and has reported staggering paper losses estimated at around $8.8 billion. The disparity between acquisition costs and current market prices has placed immense pressure on these firms, which were once confident in their Ether-centric strategies.
The challenges faced by FG Nexus and its peers underscore the inherent risks associated with aggressive crypto treasury strategies. The crypto market is notoriously unpredictable, and the case of FG Nexus serves as a cautionary tale for investors contemplating heavy investments in digital currencies. As Ether's price continues to fluctuate, the sustainability of these positions comes into question, leading to increased scrutiny from investors and analysts alike.
Moreover, the impact of these losses extends beyond just individual companies. The ripple effects of financial strain among crypto treasury companies can influence investor sentiment across the broader market. As firms like FG Nexus and Bitmine struggle, the overall confidence in cryptocurrency investments may wane, potentially leading to further downturns in prices. The interconnectivity of these entities highlights how market dynamics can swiftly change, affecting not just individual companies but the entire cryptocurrency ecosystem.
The situation at FG Nexus raises critical questions about the future of crypto treasury management. As companies reevaluate their strategies, many are now looking to unwind substantial Ether positions while grappling with the consequences of their past decisions. For instance, ETHZilla, another notable player in this landscape, recently liquidated $74.5 million in Ether to redeem convertible debt, showcasing the urgency with which some firms are addressing their financial challenges.
Trend Research is another company that has taken significant action in response to market conditions. In February, it sold 651,757 ETH for approximately $1.34 billion, realizing an estimated loss of around $747 million in the process. Such drastic measures indicate a broader trend among crypto treasury firms striving to mitigate losses and stabilize their financial positions amidst ongoing market turmoil.
Interestingly, the challenges faced by Ether treasury companies are not limited to Ethereum alone. The strain on crypto treasury plays extends to Bitcoin as well. For example, Metaplanet, a Bitcoin treasury company, has come under fire from shareholders who accuse it of concealing losses and details regarding its Bitcoin investments. Even as the company continues to buy Bitcoin, the sentiment among stakeholders is fraught with apprehension about transparency and financial prudence.
The scrutiny on crypto treasury strategies is likely to persist, particularly as more investors become aware of the risks associated with aggressive acquisition tactics. The situation surrounding FG Nexus, along with the challenges faced by Bitmine Immersion Technologies, ETHZilla, and Trend Research, serves as a stark reminder of the volatility inherent in digital asset markets. Investors are increasingly aware that what may seem like a lucrative opportunity can swiftly transform into a significant financial burden.
As the cryptocurrency market continues to evolve, it is essential for companies to strike a balance between aggressive investment strategies and prudent risk management. The plight of FG Nexus and its peers may prompt a reevaluation of how crypto treasuries are managed, with a greater emphasis on diversification and risk assessment to safeguard against market downturns.
In light of these developments, FG Nexus's future remains uncertain. While the company still holds a significant amount of ETH in its treasury, the persistent decline in Ether prices raises concerns about the viability of its remaining assets. The fear of further losses may compel FG Nexus to take additional steps to mitigate risks, including potential further liquidations or strategic shifts in its investment approach.
As we observe the ongoing dynamics within the crypto market, FG Nexus’s experience offers crucial insights into the challenges of maintaining a robust crypto treasury in an unpredictable environment. The lessons learned from this situation may ultimately shape the strategies of other firms navigating the complex landscape of digital assets moving forward. The volatility of cryptocurrencies like Ether poses a continual challenge for treasury managers, emphasizing the need for vigilance and adaptability in the face of rapid market changes.