Small-Cap Crypto Treasury Under Pressure: FG Nexus Forced to Sell as mNAV Drops to 0.84

FG Nexus, an Ethereum treasury company, sold 2,500 ETH worth $8.04 million today, marking another step in its retreat from earlier positions. The sale comes as the company’s market-to-net-asset-value ratio (mNAV) has fallen to 0.84, meaning its market capitalization now trades below the value of its ETH holdings. This forced selling reveals growing pressure on smaller treasury companies that bought Ethereum near its peak.

The Deteriorating Position

FG Nexus faces a mounting paper loss that’s becoming increasingly difficult to ignore. The company acquired 50,770 ETH between August and September 2025 at an average price of $3,944, spending approximately $200 million. Today’s ETH price of around $3,183 represents a significant decline from that entry point.

The Numbers Tell a Story

The company has been gradually reducing its position, having sold 10,975 ETH to Galaxy Digital in November 2025. Today’s sale of 2,500 ETH is the latest step in what appears to be a forced liquidation strategy.

Why the Pressure Matters

The mNAV Signal

An mNAV of 0.84 is a critical warning sign. When a treasury company’s stock price falls below its net asset value, it creates a death spiral incentive: shareholders lose confidence, stock prices fall further, and management faces pressure to prove value or exit positions. FG Nexus’s situation suggests the market has lost faith in the treasury model, at least for smaller players.

Market Dynamics at Play

The selling pressure from FG Nexus reflects a broader challenge for small-cap treasuries:

• Large treasuries like MicroStrategy have better balance sheets and can weather extended downturns
• Smaller treasuries face redemption pressure and investor skepticism
• Being forced to sell at lower prices locks in losses rather than waiting for recovery
• Each sale signals distress, potentially triggering further selling

What This Reveals About the Treasury Trend

FG Nexus’s situation is particularly telling because it entered the market during last year’s treasury boom. Companies were racing to accumulate Bitcoin and Ethereum, positioning themselves as “crypto treasuries.” The model worked beautifully in a bull market, but the reality of holding through downturns is proving harsh.

The company’s accumulated $11.52 million loss on 13,475 ETH sold represents not just financial pain but a validation of skeptics who questioned whether small companies should be making massive directional bets on crypto assets. When your treasury strategy requires holding through 19% drawdowns from your entry price, the margin for error becomes razor-thin.

The Bigger Picture

This isn’t just about one company. When smaller treasuries start forced selling, it often precedes broader market pressure. The mNAV below 1 suggests institutional investors are pricing in further risk, not confidence in a near-term recovery. If more small treasuries reach this breaking point, we could see a cascade of selling that pressures prices further.

The contrast is stark: while FG Nexus sells under duress, larger treasuries remain quiet, suggesting they have the financial runway to hold. That divergence matters for market sentiment.

Summary

FG Nexus’s forced selling illustrates the real cost of being early or wrong on timing in the crypto treasury space. A $200 million bet at $3,944 per ETH now carries an $11.52 million realized loss, with another $30+ million in unrealized losses on remaining holdings. The mNAV of 0.84 signals that the market has priced in further pain ahead, creating pressure to act rather than wait.

This situation serves as a reminder that treasury models only work when you have the capital strength to hold through volatility. For smaller players, that assumption is increasingly being tested. The next few months will reveal whether this is an isolated case or the beginning of a broader reckoning for under-capitalized treasuries.