Ethereum News Today: Fundamental Global Shares Drop 13% After $200M ETH Treasury Move

Shares of Fundamental Global Inc. (FGF) fell more than 13% in early trading on July 20, 2025, following the announcement that it would allocate $200 million from a private placement of 40 million common stock warrants into Ethereum (ETH) as part of its treasury strategy [1]. This move marks a significant shift in the company’s financial approach, with the firm also announcing it will rebrand as "FG Nexus" to reflect its new direction [1].

The strategic pivot, which came on the 10th anniversary of Ethereum’s launch, has drawn sharp market criticism, with shares dropping from around $70 to as low as $20 within hours [1]. The company cited opportunities beyond ETH price appreciation, such as staking rewards and tokenized real-world assets, as part of its value proposition [1]. However, the size and timing of the allocation—during a period of heightened crypto market volatility—have raised concerns among investors, particularly regarding liquidity and exposure to price fluctuations [1].

Industry heavyweights such as Galaxy Digital, Kraken, and Hivemind Capital have backed the shift, with Galaxy Digital tasked with managing the company’s ETH treasury and Kraken assisting with staking operations [1]. Despite the support from strategic investors, the market has not responded favorably, with many questioning the rationale behind a single-asset treasury strategy in an environment of macroeconomic uncertainty and regulatory scrutiny [1].

The announcement aligns with a broader trend of corporate adoption of Ethereum, following the lead of early Bitcoin holders and more recently companies like BitMine Immersion Technologies and SharpLink, which have also built significant ETH reserves [1]. Standard Chartered estimates that crypto treasury firms have already purchased 1% of circulating ETH since June, a number the bank expects could rise to 10% [1].

Meanwhile, Ether Machine, a firm focused on institutional-grade Ethereum exposure, disclosed a $56.9 million ETH purchase of nearly 15,000 tokens on the same day [1]. The timing of this acquisition—coinciding with Ethereum’s 10-year anniversary—has been interpreted as a signal of growing institutional confidence in the blockchain’s infrastructure and use cases [1].

Despite these developments, the immediate market response to Fundamental Global’s strategy has been cautious. While some analysts suggest the move could attract long-term crypto-focused investors, others warn of the risks associated with large-scale corporate exposure to a volatile asset class [1]. The company has yet to outline a detailed plan for managing or monetizing its ETH holdings, leaving many investors uncertain about the long-term viability of the strategy [1].

Source:

[1] Fundamental Global Sinks 13% Following Ether Treasury News – Cointelegraph (https://cointelegraph.com/news/fundamental-global-sinks-13-following-ether-treasury-news)

[2] Fundamental Global Inc. (FGF) Stock Tanks After Bold – BTCC (https://www.btcc.com/en-US/square/coincentral/716386)