FG Nexus offered $32.7 million in Ethereum to fund share buybacks after its inventory fell 94% in 4 months, highlighting the deepening web asset worth (NAV) disaster amongst digital asset treasury firms.
The sale follows ETHZilla’s $40 million ETH offload in October, underlining mounting pressures all through a sector managing over $42.7 billion in cryptocurrency belongings. This wave of pressured promoting underscores vulnerabilities within the company crypto treasury mannequin, as firms wrestle with shares buying and selling under the worth of their underlying asset holdings.
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Treasury Firms Resort to Asset Gross sales Amid Inventory Collapse
FG Nexus disclosed promoting 10,922 ETH in October to help a $200 million share buyback. The corporate started repurchasing shares after its inventory fell steeply under NAV, a measure of per-share underlying crypto worth. FG Nexus retained 40,005 ETH and $37 million in money, with whole debt rising to $11.9 million, as of Wednesday.
The agency purchased again 3.4 million shares at about $3.45 every, representing 8% of its excellent shares. Administration pressured that shares have been bought at a reduction to NAV, which reached $3.94 per share by mid-November. This technique, nonetheless, required roughly $10 million in debt and a liquidation of 21% of ETH reserves in comparison with September ranges.
FG Nexus is certainly one of a number of digital asset treasury firms pursuing crypto gross sales. ETHZilla introduced an approximate $40 million ETH sale to facilitate inventory repurchases in late October. The corporate purchased 600,000 shares for practically $12 million since October 24, looking for reduction from a persistent 30% low cost to NAV.
When a DAT firm’s shares commerce at a reduction to the worth of its crypto holdings (mNAV under 1.0), shareholders push administration to comprehend that hidden worth. The best means to do that is thru a inventory buyback, however securing the funds essential to repurchase shares requires money. If the corporate lacks adequate money reserves, it should promote a few of its crypto belongings to finance the buyback.
The mNAV of Metaplanet, a DAT firm that accumulates Bitcoin, dropped to 0.99 earlier than recovering to 1.03. Its shares have misplaced 70% since their June highs, signaling sector-wide stress. The usage of perpetual most well-liked fairness, which blends fastened dividends with crypto publicity, additional complicates capital buildings already below strain from present market situations.
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Leveraged Constructions Amplify Market Strain
DAT firms deployed $42.7 billion in crypto throughout 2025, with $22.6 billion collected in Q3 alone. This growth accelerated as Bitcoin rallied above $126,000 in October, fueling optimistic suggestions loops and rising valuations. Nevertheless, subsequent reversals uncovered weaknesses in capital buildings constructed on leverage and capital market entry.
Treasury firms account for under 0.83% of whole crypto market capitalization. Their focus of holdings, nonetheless, amplifies their affect throughout downturns. Leverage by way of convertible notes, PIPE offers, and perpetual most well-liked fairness will increase promoting strain when costs fall or NAV reductions widen.
Market liquidity deteriorated sharply as asset costs dropped. Bitcoin’s order guide depth on the 1% band fell from $20 million to $14 million—a 33% lower that heightens worth sensitivity to any promoting. Analysts estimate pressured treasury firm gross sales might attain $4 billion to $6 billion if 10% to fifteen% of positions are liquidated, doubtlessly surpassing November’s $2.33 billion in ETF outflows.
Systemic Dangers Mount as Shopping for Halts
Company crypto shopping for has stalled as a result of waning confidence and decreased capital deployment. Firms that when provided regular demand are actually promoting, reversing earlier optimistic cycles. MicroStrategy’s inventory fell 60% amid Bitcoin volatility, exhibiting the chance of correlation between crypto costs and fairness values even for firms with stable stability sheets.
Smaller treasury corporations are below elevated stress, particularly these holding much less liquid belongings. A number of corporations uncovered to Solana skilled 40% NAV drawdowns as concentrated bets deepened losses. Restricted diversification and skinny buying and selling volumes in different cryptocurrencies add to broader sector vulnerabilities.
Retail traders additionally contributed to promoting by exiting positions prematurely, lowering market demand as institutional holders started liquidating. In November, $4 billion in ETF outflows and decreased market-maker exercise intensified volatility. These situations resemble leverage-fueled market crashes seen in different asset lessons, such because the 2008 mortgage REIT disaster.
This rising disaster challenges the resilience of the digital asset treasury mannequin in extended downturns. Rigorous danger administration and regulatory oversight could possibly be mandatory to stop self-reinforcing selloffs from destabilizing the broader market. Within the weeks forward, these firms’ capacity to keep up their crypto holdings with out additional pressured liquidation will decide whether or not the sector survives intact or undergoes elementary restructuring.