FG Nexus Dumps All of Its Ethereum Holdings After Posting $45.2M H1 Loss

FG Nexus has walked away from its Ethereum treasury plan less than a year after starting it, according to an August 12 SEC filing. The Nasdaq-listed merchant bank said that it sold all of its digital assets before June 30 and held no crypto at the end of the quarter. Essentially, its crypto business has been discontinued.

FG Nexus’s staking income fails to offset loss

The company announced its Ethereum treasury strategy in July 2025 and started operations the following month. By late September 2025, the firm had bought 50,770 ETH, worth about $207 million at the time.

FG Nexus also raised $200 million to fund the business. That plan began to change this year as losses hit crypto treasury companies. The firm started offloading ETH through the spring, including a reported 10,000 ETH sale. They then completed the exit entirely by the second quarter of the year.

The numbers behind the exit show just how lopsided the trade turned out to be. The discontinued business saw a loss of $45.207 million in the first half of 2026. The loss consisted of a $41.167 million loss on ETH holdings, a $2.793 million impairment on digital intangible assets, and $1.789 million in general and administrative expenses. 

Those costs were partly offset by a $398,000 gain on digital intangibles and $144,000 in staking revenue. This amount is just 0.3% of the total loss. 

The digital asset losses weighed on the broader business too. The company reported a consolidated net loss of about $56.928 million for the first half of the year.

Notably, the liquidation brought back a meaningful amount of cash onto the balance sheet. The company reported $60.956 million in cash proceeds from ETH sales during the first half and another $14.983 million that stayed receivable as of June 30 and was collected in July. 

Those figures suggest gross proceeds from the sales rather than profit. Cash and equivalents stood at $24.9 million at the end of June. Also, after collecting the ETH sale receivable in addition to the $15.5 million from the redemption of FG Merger II shares, total cash hit $51.4 million by the end of July.

Firm turns its attention to real estate

FG Nexus's board has now moved its business to real estate. On July 1, management said it had been authorized to exit digital assets entirely. They have set up an operating subsidiary based on land-lease manufactured-housing properties. 

Chairman and CEO Kyle Cerminara said the company sees manufactured housing as offering a steady cash flow. 

“We believe manufactured housing represents one of the most compelling combinations of durable cash flow, intrinsic asset value, and long-term demand tailwinds in the United States. Our intent is to reallocate all of our capital from digital assets to cash flow-producing real estate over the near term.”

The company is also looking at a potential combination with FG Communities as a way into affordable, income-generating housing, though that deal remains in early stages.