In a daring turn marking increased institutional confidence in blockchain, Fundamental Global Inc. revealed a $200 million Ethereum Treasury strategy on July 31, 2025. The move was made simultaneously with a corporate rebrand to FG Nexus Inc., supported by heavyweight companies such as Galaxy Digital and Kraken. As Ethereum remains at the center of the decentralized finance universe, the move marks increasing belief in its scalability and use. Nonetheless, the Crypto Market’s short-term reaction was not positive, with FG Nexus shares dropping from $70 to $20. In spite of the initial volatility, the business’s long-term approach might establish a new frontier of AI-aligned finance.
Ethereum Treasury Signals Institutional Confidence
The $200 million Ethereum Treasury marks one of the largest single-asset blockchain allocations by a U.S.-based firm in 2025. FG Nexus, formerly Fundamental Global, announced the strategy as part of a broader vision to integrate blockchain into AI-driven financial infrastructure. Ethereum, with a market capitalization of over $400 billion and accounting for more than 50% of decentralized finance activity, serves as a core engine for smart contract automation—a key enabler of AI in finance.
Backed by Kraken and Galaxy Digital, the move suggests that traditional finance institutions increasingly view Ethereum not just as a speculative asset but as a foundation for future AI applications. Kraken’s backing adds credibility, given its active role in blockchain infrastructure and compliance. FG Nexus’s transition to a blockchain-forward strategy aligns with findings from a 2024 National Bureau of Economic Research study, which showed a 150% rise in corporate crypto adoption since 2020.
Stock Price Plunge Reflects Crypto Market Volatility
Despite the strong institutional support and clear strategic vision, the Crypto Market reacted with intense short-term volatility. FG Nexus stock nosedived from $70 to $20 in hours, highlighting the challenges companies face when entering blockchain finance. A 2023 MIT Sloan study indicated that 68% of firms that adopt crypto strategies experience sharp price fluctuations due to initial investor uncertainty.
The sharp drop suggests investors may need clearer communication about the company’s long-term AI and blockchain integration plans. Analysts note that the Crypto Market remains highly reactive to sentiment, especially when traditional firms pivot toward decentralized assets without a step-by-step rollout strategy. FG Nexus’s next challenge will be to stabilize investor sentiment while doubling down on its Ethereum-driven AI roadmap.
Ethereum’s Scalability and AI Integration
Ethereum’s selection as the backbone of the treasury is not just about market size—it’s about capability. With Ethereum powering over half of all DeFi transactions, it has become the top choice for firms seeking blockchain-AI convergence. Ethereum smart contracts enable frictionless data flow, automation, and machine-learning support.
Yet, the network’s energy usage is an area of focus. FG Nexus has not yet explained how it intends to mitigate this issue, particularly as AI networks also require massive computational power. Still, experts see Ethereum as a flexible enough platform to support scalable AI operations, making it a suitable choice for FG Nexus’s hybrid strategy.
Kraken Backing and the Road Ahead
Kraken’s involvement in the Ethereum Treasury initiative brings a critical layer of strategic support. As a key player in regulatory dialogue and infrastructure development, Kraken’s backing signals a move toward legitimacy and structured implementation. Their partnership gives FG Nexus both operational guidance and ecosystem credibility—two vital components in navigating the evolving crypto market.
Looking ahead, FG Nexus may need to invest in transparent communication, governance frameworks, and AI-led financial tools to ensure investor alignment. The company’s Ethereum Treasury strategy, while bold, hinges on execution. With Kraken’s support and Ethereum’s capabilities, the foundation is strong. The next step lies in converting volatility into trust and strategy into sustained growth.
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