FG Nexus Loses $80M on Ethereum: Selling Down?

Imagine watching $80 billion evaporate from your balance sheet because you bought at the top of the market. That is the harsh reality facing the FG Nexus right now. On February 25, 2026, the FG Nexus Ethereum financial company dumped another 7,550 ETH on the market, locking in the biggest loss of the crypto just as prices rose near critical lows.

As FG Nexus pushes the panic button, it’s an important question from all of us. Is this a sign that the price of ETH will continue to fall, or is this institutional withdrawal from the past indicating a market decline? Let’s dig into the data.

Ethereum financial firm FG Nexus(@FGNexusio) sold another 7,550 $ETH($14.06M) today.

In August and September 2025, they bought 50,770 $ETH($196M) for a $3,860 average.

On October 22, 2025, they announced plans to sell their property to buy more $ETH.

But less than a month later, they… pic.twitter.com/m5cFreTBQk

– Lookonchain (@lookonchain) February 25, 2026

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Buy High – Sell Low: How FG Nexus Recovered From $80M Ethereum Loss

FG Nexus performed a significant Ethereum liquidation on February 25, releasing 7,550 ETH worth approximately $14 million. The sale brings the company’s net loss to approximately $82 million.

Between August and September 2025, FG Nexus significantly built its position by buying more than 50,000 ETH at an average price of $3,860. Their sale came before the ETH price returned to the $2000 level.

The sale was submitted to Galaxy Digital, showing a clear intention to exit rather than make a quick buck.

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Institutional FOMO: How Did They Get Here?

To understand this crisis, we have to look back to mid-2025. It was a time of great hope. FG Nexus, once called Fundamental Global, rebranded and raised $200 million to copy the playbook of other crypto-native assets. They all went in and bought at the top of the market with great enthusiasm.

At the time, it seemed like a smart move. Everyone expected the bull run to go on forever. However, this strategy highlights the danger of entering the market without a long-term volatility plan. While other companies weathered the storm, FG Nexus quickly found itself underwater. This is very different from other corporate strategies. For example, while FG Nexus is selling, Metaplanet continues to hold despite the loss of valuation, which proves that not all company shares react in the same way to red candles.

It also highlights the differences between latecomers and established players like MicroStrategy’s long-term accumulation strategy. While Michael Saylor’s company has historically bought on dips and rips over the decade, FG Nexus seems to have been caught up in the momentum, forcing them to sell at the worst possible time.

Are They Selling The Bottom Ot Cutting Their Losses Before Going Down More?

This brings us to a heated debate on Crypto Twitter: Does FG Nexus show weak “paper hands”, or is it making the necessary exit?

With Ethereum trading up +11% in the last 24 hours, their choice to sell now seems like a strangely bad time. However, there is a nuance here that wholesalers often miss. A business wallet works differently than your personal wallet. Public companies have quarterly reporting requirements, debt obligations, and impatient shareholders. When the stock price goes up 52%, as FGNX did, management faces great pressure to “stop the bleeding.”

In this sense, the movement looks less like panic and more like a forced completion to survive. It is similar to recent incidents of miner migration, where Bitcoin miners were forced to sell their assets to pay electricity bills and operating costs. FG Nexus may not want to sell, but its balance sheet may force it to.

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What On-Chain Data Says About Local Bottoms

This is where things get interesting for you as an investor. Historically, when large businesses are forced to liquidate their capital at a loss, it usually indicates a downturn in the local market. It sounds counterintuitive, but think about it: once the desperate sellers are out of the market, the pressure to sell disappears.

We are seeing this play out in on-chain data right now. While treasury firms such as FG Nexus are selling, an important whale warning has been heard from the other side.

Big whales added about 9 million ETH to their private wallets during this latest drop.

Whale 0x2bd7 changed 240 $BTC($16.28M) for 8,152 $ETH yesterday.

Then he borrowed 36M $USDT from #Awe buying another 17,284 $ETH with an average price of $2,083.

The liquidation price is $1,705.65. pic.twitter.com/xEsoZmRXKo

– Lookonchain (@lookonchain) February 26, 2026

FG Nexus Still Holds 30,000+ ETH

Despite this massive sale, FG Nexus still holds around 30,000 ETH. This position is underwater, and hangs over the market like a dark cloud.

Traders are worried about the “capitulation cascade.” If the price of ETH falls below the $1,800 support level, FG Nexus may be forced to liquidate the remainder of its holdings to protect shareholder value. This continued tightening of supply may depress price movements in the short term. The market will be watching their next quarterly report in May 2026 very closely.

For now, watch the $1,900-$2,000 area and a possible break above the $2150 resistance. If Ethereum can hold a support level despite millions of dollars in selling pressure, it shows that there is enough demand for supply. That would be a very good sign for the rest of 2026.

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