FG Nexus Goes All-In On Ethereum, Aims For 10% Of Total Supply

FG Nexus (FGNX) kicked off its aggressive push into Ethereum (ETH) on Monday, announcing its first ETH purchase of 47,331 tokens, worth roughly $200 million.

It also announced plans to become the top corporate holder of the second-largest cryptocurrency by accumulating 10% of Ether’s total supply, putting the company head-to-head against Bitmine Immersion Technologies (BMNR), which aims to secure 5% of Ethereum’s supply for its own treasury plans. FG Nexus’ stock jumped more than 10% after the opening bell.

Bitmine Immersion is currently the largest corporate holder of Ethereum with 1.15 million tokens. It announced its latest purchase of 317,000 tokens earlier on Monday. BMNR’s stock rose more than 12% as markets opened with retail sentiment on Stocktwits rising within ‘extremely bullish’ territory amid ‘high’ levels of chatter.

FG Nexus’ new ETH purchase comes after the company announced plans to set up a $5 billion shelf registration in a filing with the SEC on Friday to support its ETH acquisition strategy. It started to accumulate the cryptocurrency on July 30 with a symbolic 6,400 ETH purchase, marking the 10th anniversary of Ethereum’s genesis block. 

FG Nexus, formerly called Fundamental Global, said it has already deployed all of the net proceeds from its $200 million private placement towards purchasing ETH.  The company added that its strategy centers on accelerating token accumulation while generating “ETH Yield”—the amount of Ethereum held per share, which it calls the core value metric for shareholders.

“We plan to become a significant player in the Ethereum network with a goal of a 10% stake,” said Maja Vujinovic, CEO of Digital Assets at FG Nexus. CEO and Chairman Kyle Cerminara said the company intends to leverage its experience in digital assets and financial services to differentiate itself in the market.

The race between the two companies takes off as Ethereum's price eyes a fresh all-time high after hitting $4,300 over the weekend. The cryptocurrency had shed some of its gains by Monday morning, still trading above $4,200 at the time of writing.

Read also: Peter Thiel-Backed Bullish Targets $4.82B Valuation After Upsizing US IPO

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