FG Nexus sold all its Ethereum before June 30, ending an 11-month treasury strategy that generated just $144,000 in staking revenue against a $45.207 million operating loss. The Nasdaq-listed merchant bank now plans to redirect its capital into manufactured-housing real estate.
FG Nexus held no cryptocurrency at quarter-end after selling every ETH token it owned before June 30, according to an Aug. 12 SEC filing. The Nasdaq-listed merchant bank, formerly known as Fundamental Global, is walking away from a digital-asset strategy it launched less than a year ago.
The company announced its Ethereum treasury strategy in July 2025 and began operations the following month. At its peak, FG Nexus held more than 50,000 ETH. However, it started divesting the position this year as a broader market contraction pressured digital asset treasury companies across the sector.
Staking income barely dented the loss
The exit exposed how little staking revenue offset the losses from FG Nexus's Ethereum-focused strategy. The company recorded just $144,000 in staking revenue during the first half of 2026, equivalent to roughly 0.3% of its $45.207 million loss from the discontinued digital-asset operation.
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. FG Nexus 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, plus 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 the sales.
FG Nexus pivots toward housing
With its ETH holdings divested, the company's board is shifting focus toward real estate. FG Nexus said in July that it plans 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 and CEO of FG Nexus, said the company intends to "reallocate all of our capital from digital assets to cash flow producing real estate" in the near term. That transaction remains preliminary — a special committee is still reviewing the proposal, and no definitive agreement has been reached.
Source: SEC EDGAR filing
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