Ethereum Treasury Sells Almost 11,000 Ethereum to Finance Share Buyback

FG Nexus Ethereum Sale: FG Nexus sold 10,922 Ethereum for about $33 million to fund a share repurchase program, using combined proceeds and borrowed funds to buy back 3.4 million shares at an average price of $3.45, significantly below its net asset value.

Market Impact: The sale pressured crypto prices, causing Ethereum to drop roughly 2% and Bitcoin about 1%, highlighting the market's sensitivity to treasury firms liquidating assets to support equity valuations.

Treasury Firm Challenges: Many digital asset treasury firms, including ETHZilla, are facing significant challenges, trading at or below net asset value, leading to concerns about the sustainability of their business models as they liquidate core assets.

Future Outlook: The digital asset treasury space may undergo substantial consolidation, as firms like Bitmine Immersion Tech hold large Ethereum treasuries while others struggle with stock declines of 50% to 98%, raising questions about the viability of the treasury model.