Ethereum Updates Today: DATs Buyback Strategy May Surpass Liquidity Challenges Amid Rising Debt

FG Nexus Inc. (FGNX) recently liquidated $32.7 million worth of

to support a stock repurchase initiative after its share price plunged 94% over the past four months, highlighting escalating difficulties for digital asset treasury (DAT) companies contending with discounts to net asset value (NAV). The firm revealed it sold 10,922 ETH in October, utilizing the proceeds along with $10 million in borrowed funds to buy back 3.4 million shares at $3.45 each—representing 8% of its total shares—while . currently retains 40,005 ETH, maintains $37 million in cash, and carries $11.9 million in liabilities, .

This action reflects wider industry strains, as DATs overseeing $42.7 billion in crypto assets are being forced to liquidate between $4 billion and $6 billion to help stabilize their share prices. ETHZilla, another treasury firm focused on Ethereum, earlier

to fund its own share buyback. AVAX One (AVX), supported by Anthony Scaramucci, also this week, joining a growing number of DATs turning to repurchases to close the gap between their market price and asset value.

FG Nexus’s approach relies on a mix of borrowing and asset sales to enhance share value. CEO Kyle Cerminara mentioned

as long as its stock trades below NAV, resulting in what he described as an “increasingly asymptotic effect” as the share count drops and NAV per share climbs. Still, the company’s debt has , and it has sold off 21% of its ETH holdings since September. that limited liquidity, increased leverage, and a slowdown in corporate buying could heighten systemic risks as firms unwind positions to support their share prices.

The sharp decline in share price points to broader market doubts.

of $38.30 and now sit at $2.41, more than 35% below NAV. Similar trends have affected competitors: ETHZilla’s shares are trading at a 30% discount to NAV, while , saw its market-to-NAV ratio fall to 0.99 earlier this month.

Market responses to these asset sales have varied. Ethereum’s price slipped 2% right after FG Nexus’s announcement, but both ETH and

recovered somewhat. Michael Saylor, chairman of MicroStrategy, , referring to it as “Satoshi’s gift” and stressing the importance of long-term Bitcoin holding.

FG Nexus’s third-quarter report revealed

from $110,000 a year earlier, though its operating margin remains deeply negative at -74.4%, underscoring ongoing operational hurdles. The company’s restructuring—which includes and a collaboration with Securitize to tokenize shares—aims to shift the business toward asset tokenization and digital finance.

Industry experts warn that the DAT business model’s future hinges on resolving liquidity and demand challenges.

that ongoing dilution and a crowded DAT sector have dampened investor enthusiasm, pushing companies to rely on aggressive buybacks and asset disposals to stay competitive.