Fundamental Global files $5 billion shelf for Ethereum treasury strategy, targets 10% network stake

Key Takeaways

Fundamental Global filed a $5 billion shelf registration to support its Ethereum treasury strategy.
The company targets a 10% market share in the Ethereum network by leveraging capital raises and ETH accumulation.

Fundamental Global, a Nasdaq-listed financial services provider, filed a $5 billion shelf registration statement with the US SEC this week as part of its ongoing effort to scale its Ethereum accumulation strategy.

The company, soon to be renamed FG Nexus, aims to become the world’s largest corporate holder of ETH, targeting a 10% stake in the network.

Achieving this goal would make Fundamental Global one of the largest corporate holders of Ethereum, in the company of BitMine, which holds $3.5 billion, and SharpLink, which owns $2.2 billion.

The shelf registration, one of the largest in the digital asset treasury space, includes an “at-the-market” prospectus covering up to $4 billion in common stock sales. This structure gives Fundamental Global the flexibility to raise funds over time, allowing the company to move quickly when market conditions are favorable.

The remaining capacity could be issued as preferred stock, debt, or other securities.

“This $5 billion shelf filing represents a significant step in our capital raising capabilities and positions us to move with speed and scale when capital deployment opportunities arise,” said Kyle Cerminara, CEO and Chairman of Fundamental Global, in a statement. “We believe this framework will enable us to capitalize on ETH accumulation opportunities and support our target of a 10% stake in the Ethereum Network.”

According to Maja Vujinovic, head of the company’s Digital Assets Division, institutional adoption of digital assets is accelerating, creating a favorable backdrop for Fundamental’s capital deployment plans.

The strategy is to capture multiple value drivers, including ETH price appreciation, staking rewards, and exposure to tokenized real-world assets built on Ethereum, she noted.

Fundamental Global pivoted to Ethereum in late July with a $200 million private placement aimed primarily at purchasing Ethereum as its primary treasury reserve asset.

Fundamental Global (FGF) shares plunged 48% at market close on Friday, per Yahoo Finance.