New York — Shares of Fundamental Global Inc. (NASDAQ: FNGG) experienced a sharp decline today after the company announced a major strategic pivot toward Ether (ETH) as its primary treasury asset. The Nasdaq-listed stock dropped 13.7% in intraday trading.

ETH Treasury Allocation

Fundamental Global disclosed plans to invest a substantial $200 million into Ether, drawing funding from a private placement of 40 million common stock warrants valued at $5 each. As part of this transition, the company announced a name change, transitioning to “FG Nexus.”

Strategic Partnerships

The company revealed partnerships with key players in the Web3 space: Galaxy Digital will assume responsibility for managing the company’s EthTreasury™, Kraken will provide staking and treasury operational assistance, and Hivemind Capital will serve as one of several strategic investors backing the shift.

Broader Context and Market Reaction

Fundamental Global is positioning itself alongside a growing cohort of traditional finance (TradFi) entities accumulating significant ETH reserves. This follows a trend set by early Bitcoin (BTC) treasury adopters and underscores increasing institutional interest in Ether.

• Funds managed by crypto treasury firms already control approximately 1% of all circulating ETH, with projections suggesting this figure could reach 10%.
• BitMine Immersion Technologies is recognized as the largest corporate holder of Ether, possessing 625,000 ETH valued at roughly $2.35 billion.
• SharpLink, a Nasdaq-listed company, recently accumulated $290 million worth of ETH.

Latest Market Activity

Today’s sell-off reflects investor sentiment, despite prominent backing, contrasting with separate, concurrent announcements.

Ether Machine, a provider of institutional access to Ethereum infrastructure and yield strategies, also disclosed significant ETH purchases on Wednesday, acquiring nearly 15,000 ETH worth $56.9 million. Ether Machine’s CEO cited a new level of regulatory clarity as enabling “production ready systems” on Ethereum.