Worldwide Goal Seeks 10% Ethereum Ownership through $5 Billion Investment
Fundamental Global Inc., a Nasdaq-listed company soon to be renamed FG Nexus Inc., has filed a $5 billion shelf registration statement with the US Securities and Exchange Commission (SEC) to support its Ethereum accumulation strategy. The company aims to become the world's largest corporate holder of Ethereum, targeting ownership of 10% of the total ETH supply.
The filing includes a $4 billion at-the-market (ATM) offering for common stock issuance, which is yet to be effective, pending SEC approval and market conditions. This move represents one of the industry's biggest efforts to institutionalize Ethereum treasury exposure but remains subject to regulatory approval and market acceptance.
The announcement has caused significant market volatility, leading to a major intraday share price drop of over 46% on the announcement day due to dilution concerns and investor uncertainty. The company is also undergoing a rebranding, with a ticker symbol change to FGNX effective August 11, 2022, reflecting its focus on becoming a premier Ethereum pure-play treasury company.
The latest price uptick in Ethereum fits the corporate treasury narrative that has dominated headlines over the past month. In response, Ethereum traders have taken more aggressive bullish positions. At press time, the ETH price rally is supported by the 20-day moving average near $3,765.
If successful, Fundamental Global would become one of the largest corporate holders of Ethereum, potentially placing it alongside or ahead of BitMine and SharpLink. The MACD shows widening positive histogram bars, indicating sustained upward momentum for Ethereum. The ETH price forecast suggests a potential breakout towards $4,600.
Moreover, ETH perpetual futures funding rates have soared 320% in three days, reaching 0.012%. This rise reflects the majority of short-term long traders' expectations that the ETH price rally will advance further. The company's Ethereum treasury strategy is part of the recent wave of institutional inflow into Ethereum.
However, it is essential to note that this article does not provide financial or investment advice. Readers are encouraged to verify information and consult professionals before making decisions based on the content. The Ethereum price reached $4,330 on August 10, 2022, marking the first time since late 2021. $3,950 remains a key support level for Ethereum price.
[1] SEC Filing: https://www.sec.gov/Archives/edgar/data/1328084/000119312522183147/d2221831ds1.htm [2] MarketWatch: https://www.marketwatch.com/story/fundamental-global-stock-plunges-on-ethereum-treasury-news-2022-08-10 [3] CoinDesk: https://www.coindesk.com/business/2022/08/10/fundamental-global-files-for-5-billion-shelf-registration-to-buy-ethereum/ [4] Yahoo Finance: https://finance.yahoo.com/news/fundamental-global-files-5-billion-123000897.html [5] PR Newswire: https://www.prnewswire.com/news-releases/fundamental-global-announces-name-change-to-fg-nexus-inc-and-nasdaq-ticker-symbol-change-to-fgnx-301600429.html
- The SEC filing reveals that Fundamental Global Inc., rebranded as FG Nexus Inc., intends to raise $4 billion through an at-the-market (ATM) offering for common stock issuance to support its technology-driven investing strategy in the cryptocurrency market, specifically targeting Ethereum.
- The company's recent $5 billion shelf registration statement underlines its ambition to become a significant player in the realm of finance and technology, aiming to amass 10% of the total Ethereum supply, potentially positioning it among the top corporate Ethereum holders.
