Ethereum Firm Dumps Millions in Crypto to Save Its Sinking Stock

FG Nexus, a company that invests in Ethereum, just sold off a big chunk of its crypto holdings. They unloaded about $31 million worth of Ethereum, which is roughly 10, 922 ETH. This move came as their stock was taking a hit, dropping more than 7% in a single day. The company's stock has been on a downward spiral, losing nearly 37% of its value in just one month. Over the past six months, it's plummeted by more than 85%. Not too long ago, in August, the stock was trading above $40. Now, it's struggling to stay afloat at $2. 41. So, why sell off Ethereum? FG Nexus plans to use the money to buy back its own shares. This is a strategy to boost the value of the remaining shares. The company's CEO, Kyle Cerminara, mentioned that they've already repurchased 8% of their outstanding shares at a price much lower than their net asset value. They aim to keep buying back shares as long as the stock trades below its net asset value. FG Nexus isn't the only company doing this. Other firms, like ETHZilla and SharpLink Gaming, have also sold off some of their Ethereum to buy back shares. This tactic is often used when a company's market value is lower than the value of its assets. Despite the recent sell-off, FG Nexus still holds a significant amount of Ethereum—about 40, 005 ETH, worth around $115 million—and $37 million in USDC. They've repurchased around 3. 4 million shares at an average cost of $3. 94. The big question is, will this strategy work? Buying back shares can sometimes signal confidence in the company's future. But with the stock continuing to drop, it's a risky move. Only time will tell if this gamble pays off.