Fundamental Global files $5B SEC registration to grow Ethereum holdings, aiming for 10% network stake and staking rewards.
Fundamental Global Inc., a U.S.-based investment company, has taken a major step in its crypto strategy. The firm recently filed a shelf registration with the U.S. Securities and Exchange Commission (SEC) to raise up to $5 billion. The funds will be channeled towards creating a huge Ethereum treasury. This step is an indication that the company is serious about being a big player in the cryptocurrency space, particularly the Ethereum.
FG Nexus Aims for 10% Stake in Ethereum Network
This strategy, which the company is planning to adopt as soon as it rebrands to FG Nexus, will enable the company to emulate the MicroStrategy. MicroStrategy concentrated on Bitcoin, whereas FG Nexus is shifting the attention toward Ethereum. Through this strategy, it will be among the biggest corporate owners of ETH. This implies that the firm is interested in purchasing and holding some of its capital in Ethereum with the expectation that it can appreciate in value as well as generate returns via staking.
The shelf registration enables the firm to issue securities in phases. It does not require individual authorization of every sale. This freedom offers Fundamental Global an opportunity to generate funds according to the market demand and conditions. Maximum $4 billion of this registration will be offered by an at-the-market offering. This implies that the company may sell the stock at a rate that suits it at any given moment using the services of ThinkEquity.
The company recently raised a capital of 200 million by way of a private placement. This has already made a good start to their $5 billion target. Kyle Cerminara, the CEO of the firm, has indicated that in the long run, the company intends to purchase a 10 percent stake in the Ethereum network. In case of success, this would render FG Nexus among the most recognizable Ethereum holders on publicly traded companies.
Related Reading: SharpLink’s $85M ETH Buy, $5B Ethereum Treasury Shake Crypto Market
FG Nexus Eyes Institutional Growth Through Ethereum Holdings
In addition to growing its Ethereum holdings, the company plans to stake its ETH. Staking is a process whereby Ethereum is staked with the network in order to gain rewards. By doing this, the firm is not only looking forward to horde Ethereum as a source of store of value, but also be able to earn an income out of it. This also makes FG Nexus a pure-play Ethereum investment company but provides an untouched exposure to ETH and its prerogatives.
The company had also mentioned its rebranding plans, which entailed the alteration of their NASDAQ ticker symbol FGNX to FGNXP. It demonstrates a new direction and emphasis of the firm as it increases its presence in the block chain area.
There is an inclination toward corporate balance sheet storage of crypto. Increasingly more firms are beginning to consider digital assets as a vehicle for their treasury. Ethereum specifically is becoming popular due to its smart contract capabilities and staking payoffs. FG Nexus would be following in the footsteps of companies like BitMine, Bit Digital, and SharpLink Gaming, who have already started looking into ETH.
Overall, the initiative beckons with vast changes in the way public companies might invest and expand. As a way of adoption, a path that will lead to Fundamental Global being on the forefront of the next institutional crypto wave, an essential aspect of the crypto space, the company is incorporating Ethereum.
