A line on FG Nexus’s balance sheet that held $133 million in December read zero on June 30. The Nasdaq-listed merchant bank sold every digital asset it owned before the quarter closed.
FG Nexus completed the sale of all of its previously held digital assets prior to June 30, 2026, according to a quarterly report the company filed with the Securities and Exchange Commission (SEC) on August 12.
Board Authorized the Exit in June
The company stated that in June 2026 its board authorized management to continue reducing exposure to digital assets by exiting the digital asset business. It held ETH and wrapped staked ETH before the sale, both through custodial arrangements with third-party custodians, and used Coinbase as the principal market for valuing its ETH.
FG Nexus launched the digital asset business in 2025 and adopted Ether as its primary treasury asset. The digital assets segment was reclassified to discontinued operations during 2026. Managed services and reinsurance had been reclassified in 2025.
ETH Sales Generated $60.956 Million
Proceeds from sales of ETH digital assets totalled $60.956 million for the six months ended June 30, recorded as inflows from continuing operations because the funds are expected to fund ongoing operations, according to the filing.
The balance sheet carries a further $14.983 million as a receivable from the sale of ETH digital assets, representing cash due to the company from the sale, which it says was received in July 2026.
Assets of discontinued operations stood at zero at June 30, against $133.267 million at December 31, 2025. Cash and cash equivalents rose to $24.923 million from $13.395 million over the same period.
Equity Fell 55% in Six Months
Total stockholders’ equity fell to $64.121 million at June 30 from $143.491 million at December 31, a decline of $79.370 million. Accumulated deficit widened to $126.381 million from $68.743 million. Total assets fell to $69.328 million from $163.844 million, and total liabilities to $5.207 million from $20.353 million.
The company reported a consolidated net loss of $56.928 million for the six months, comprising a $13.346 million loss from continuing operations and a $43.582 million loss from discontinued operations, which covers both the digital assets and reinsurance businesses. Continuing operations generated revenue of $0.473 million against a $5.205 million operating loss.
Company Targeted a 10% Stake in Ethereum
FG Nexus raised $200 million through a private placement in July 2025 to launch the strategy, with participation from Galaxy Digital, Kraken, Hivemind Capital, Syncracy Capital, Digital Currency Group, and Kenetic. The company was renamed from Fundamental Global at the time, and The Crypto Times reported the raise.
Holdings reached 50,000 ETH valued at $210.1 million by September 2025, at an average purchase price of about $3,860, with the company stating a target of a 10% stake in the Ethereum network. The Crypto Times covered the milestone.
By February 2026 the company had sold about 21,025 ETH at an average of roughly $2,649 and held 30,094 ETH, according to Arkham data cited in the reporting The Crypto Times covered at the time.
Native Staking Ceased in December 2025
FG Nexus began native staking in August 2025 and continued through December 2025 and did not engage in native staking during the six months ended June 30, 2026, according to the filing. It also participated in liquid staking, receiving wstETH in exchange for deposited ETH, and redeemed that wstETH during the second quarter.
The company recognized staking revenue on a net basis, after validator commissions, and reported it within the loss from discontinued operations.
Options Trading Started in January and Ended With the Exit
FG Nexus began entering ETH-denominated option contracts in the first quarter of 2026, primarily by selling puts and calls, as part of its digital asset treasury strategy. It recognized a net realized gain of $0.5 million in the second quarter and $0.4 million across the six months.
No ETH option contracts were outstanding at June 30, and the company stated it does not expect to enter into them in the future as a result of exiting the digital asset business.
Special Committee Weighing a Housing Combination
The board announced a review of strategic alternatives in April 2026 and has discussed a potential business combination with FG Communities, a self-managed real estate company holding manufactured housing communities, which FG Nexus’s own merchant banking division helped launch.
A special committee composed solely of independent directors is evaluating the transaction and has retained an independent financial advisor to provide a fairness opinion. The filing states the discussions are preliminary, that no decisions or agreements have been reached, and that there can be no assurance the transaction will be pursued or completed. In June the board also authorized management to reallocate capital to real estate acquisitions.
The company’s two operating segments are now merchant banking and real estate. It owns property in Quebec, Canada, on which it signed a non-binding letter of intent in October 2025 to sell for CAD 15.0 million; as of June 30 it does not consider a closing under that letter probable.
Company Has Carried Four Names Since 2013
SEC records show the filer was registered as 1347 Property Insurance Holdings, Inc. until November 2013, as FG Financial Group, Inc., from December 2020, and as Fundamental Global Inc. from February 2024 before adopting its current name.
A 1-for-5 reverse stock split took effect on February 13, 2026. Common shares outstanding stood at 5,095,688 on August 7, after repurchases of $15.297 million in common stock and $6.717 million in Series A preferred shares during the first half.
Also Read: SharpLink Posts $394M Q2 Loss, But ETH Treasury Remains Intact
