Fundamental Global’s Shares Surge in Premarket After Ethereum Treasury Announcement

Fundamental Global Inc. (NASDAQ: FGF) shares skyrocketed 76.66% in premarket trading to $38.00 as of 4:59:32 AM EDT on July 30, 2025, following the company’s announcement of a transformative $200 million private placement to launch an Ethereum treasury strategy. The dramatic surge comes after the stock closed at $21.51 the previous day, representing one of the most significant premarket moves for the insurance and financial services company.

The announcement coincides with Ethereum’s 10th anniversary and positions Fundamental Global as part of a growing trend of corporate treasury adoption of the world’s second-largest cryptocurrency.

Fundamental Global Raises $200 Million to Purchase ETH as Company’s Primary Treasury Reserve Asset

Fundamental Global’s pivot to an Ethereum treasury strategy represents a significant shift for the North Carolina-based company, which traditionally operated in reinsurance, merchant banking, and asset management.

The $200 million private placement, led by strategic investors including Galaxy Digital, Kraken, Hivemind Capital, and Digital Currency Group, will be used primarily to purchase ETH as the company’s primary treasury reserve asset. This move aligns with a broader corporate trend highlighted by Standard Chartered, which predicts Ethereum treasury firms could eventually hold 10% of all ETH in circulation.

The company will rebrand as FG Nexus Inc. with new ticker symbols FGNX and FGNXP, signaling its commitment to this strategic transformation. Notable industry veteran Joe Moglia, former Chairman and CEO of TD Ameritrade, will serve as Executive Advisor, bringing decades of financial leadership experience.

The digital asset division will be led by Maja Vujinovic, an early blockchain pioneer who previously served as CIO of Emerging Technologies at GE, where she launched one of the first institutional-grade finance transactions on blockchain in 2015.

Galaxy Digital will serve as a strategic advisor to manage the Ethereum treasury and provide asset management, yield execution, and infrastructure support. This partnership positions FG Nexus to capture multiple value drivers beyond ETH price appreciation, including staking rewards that support network security and access to tokenized real-world asset opportunities.

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FGF Stock Sees Dramatic Premarket Surge

The dramatic premarket surge to $38.00 (+76.66%) at 4:59:32 AM EDT represents a stark contrast to FGF’s recent performance challenges. The stock has struggled significantly over longer time horizons, posting negative returns of -1.33% year-to-date, -18.83% over one year, -43.76% over three years, and a devastating -80.49% over five years, dramatically underperforming the S&P 500’s positive returns across all these periods. The company’s market capitalization stood at $27.37 million before the premarket surge, reflecting its status as a small-cap stock in the diversified insurance sector.

Fundamental Global’s financial metrics reveal the challenges that may have driven this strategic pivot. The company reported a profit margin of -48.88%, return on assets of -15.98%, and return on equity of -40.66%, with diluted earnings per share of -$22.47. Revenue stood at $13.26 million with a net loss of $28.23 million. The company maintains $5.67 million in total cash and relatively low debt with a total debt-to-equity ratio of 5.33%.

The private placement structure involves 40 million prefunded common stock warrants priced at $5.00 per warrant, funded through a combination of cash and cryptocurrencies. The closing is expected around August 1, 2025, and existing shareholders will receive contingent value rights linked to the monetization of legacy non-core assets through the newly formed FG CVR Trust, ensuring alignment with long-term value creation as the company transitions to its new Ethereum-focused strategy.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.