Shares of Fundamental Global declined sharply following the announcement of a strategic shift towards Ethereum as its primary treasury asset. This move reflects a growing trend among corporate investors in ETH.
Strategic Shift to ETH
Today, shares of Fundamental Global plummeted on Nasdaq after the company announced its pivot towards Ethereum ([ETH]) as its primary treasury asset. Plans were revealed to allocate $200 million for ETH purchases, funded through a private placement of 40 million common stock warrants priced at $5 each.
Market Reaction and Investments
Markets reacted negatively to the announcement, with shares sliding 13.7%. Strategic investors backing this pivot include Galaxy Digital, Kraken, and Hivemind Capital. As part of the transition, the company is rebranding itself as 'FG Nexus.'
Ether Market Situation
Adopting ETH treasury strategies is becoming increasingly common. According to a recent report by Standard Chartered, crypto treasury firms have acquired 1% of all circulating ETH since early June, a figure projected to rise to 10%. Meanwhile, BitMine Immersion Technologies is the largest corporate holder of ETH, disclosing 625,000 ETH worth approximately $2.35 billion.
While Fundamental Global's initiative is significant, the negative market reaction highlights the risks involved with such strategic changes. Nevertheless, ETH continues to gain traction as a corporate asset.
