Fundamental Global's stock price plummeted on Nasdaq after the company announced a major strategic shift to make Ethereum (ETH) its primary treasury asset. The company revealed plans to allocate $200 million to ETH, funded by a private placement of 40 million common stock warrants, each priced at $5.
This move aligns Fundamental Global with other companies building ETH treasuries. According to the announcement, the company aims to provide "multiple value drivers beyond ETH price appreciation," including staking rewards and exposure to tokenized real-world assets.
Strategic investors supporting this shift include Galaxy Digital, which will manage the company's ETH treasury; Kraken, which will assist with staking and treasury operations; and Hivemind Capital. As part of the transition, Fundamental Global is changing its name to "FG Nexus."
Despite the backing of well-known institutions, the market reacted negatively to the announcement, with stock prices dropping 13.7% on the day, according to Google Finance.
The company joins the list of businesses adopting an Ethereum treasury strategy, following the path paved by early Bitcoin (BTC) adopters. According to Standard Chartered, crypto treasury companies have purchased 1% of all circulating ETH since early June, and the bank expects this figure could rise to 10%.
Bitcoin mining company BitMine Immersion Technologies is currently the largest corporate holder of Ethereum, disclosing on Monday that it holds 625,000 ETH, valued at approximately $2.35 billion. Nasdaq-listed SharpLink is known to be the second-largest holder, accumulating $290 million worth of ETH at an average price of $3,756 per coin between July 21 and 27.
Ether Machine, a company focused on providing institutional-grade exposure to Ethereum infrastructure and yield strategies, also disclosed a significant ETH purchase on Wednesday. The company announced it has acquired nearly 15,000 ETH, totaling $56.9 million in value.
"With the regulatory clarity we are just beginning to receive from Washington, large institutions are finally able to build production-ready systems on Ethereum, and all the use cases we've been discussing for the past decade can finally become a reality," said David Merin, co-founder and CEO of Ether Machine, in an interview with Cointelegraph. "I have never been more optimistic about Ethereum's mid-term prospects."
The company's announcement coincides with the 10th anniversary of Ethereum on Wednesday.
Related: Ethereum (ETH) 2035: What the Next Decade Could Look Like
Original article: “Fundamental Global Sinks 13% Following Ether Treasury News”
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