Why Everyone’s Selling Crypto Like Hotcakes: A Sobering Tale of Stocks, ETH, and a Dash of Panic

FG Nexus, that brave and slightly clueless company, parted with $32.7 million worth of Ethereum in a frantic attempt to buy back its own shares-mind you, after its stock plummeted 94% in just four months! Clearly, the crypto NAV crisis is turning into a full-blown soap opera amid the digital asset sector, which manages a hefty $42.7 billion in crypto. Ah, the sweet chaos of financial innovation! 🎭

This dramatic sale follows ETHZilla’s daring $40 million ETH dump last October. Evidently, these digital asset treasure chests are feeling more like sinking ships. It’s as if companies are desperately trying to pretend their crypto assets are worth more than they actually are, all while juggling stocks that are trading far below what their underlying assets suggest. What could possibly go wrong? 🤔

Treasury Companies: Selling Off Assets When Stocks Face the Music

FG Nexus, ever the pioneers of bad timing, disclosed they sold 10,922 ETH in October to fund a $200 million share buyback. The company bought back a measly 3.4 million shares at about $3.45 each-discounted, of course, because everyone loves a good bargain (or so they think). Management confidently claimed they bought at a discount to NAV, which was at $3.94 per share by mid-November. Ah, the sweet aroma of hope mixed with debt-about $10 million worth-plus 21% fewer ETH in reserves since September! 🥴

• They still hold 40,005 ETH; enough for a modest party. 🎉
• Total debt now stands at $11.9 million-a lovely number to keep the accountants busy.

FG Nexus sold $32.7M in ETH: Treasury Companies Are Starting to Sell

🔹 FG Nexus sold $32.7M in ETH (10,922 ETH)
🔹 Now holds around 40,005 ETH
🔹 Other companies are following suit
🔹 Stock down an astonishing 94% in just 4 months

Their stocks are doing the moonwalk-down and out…

– Crypto Patel (@CryptoPatel) November 20, 2025

Not to be outdone, ETHZilla’s card was also marked: a quick $40 million ETH sale in late October helped fund some share buybacks. They acquired 600,000 shares for nearly $12 million-because nothing screams ‘confidence’ like selling more crypto to buy your own stock when it’s trading at a discount. The sector is playing a high-stakes game of financial hot potato, with assets bouncing below their perceived value (mNAV < 1.0). Could this be the infamous “get out while you can” moment? 🃏

And if a company’s share price is below the value of its crypto stash, shareholders demand action! The chosen remedy? Buy back shares-if they’ve got the cash, that is. When cash is scarce, sell some crypto-just like that, the bubble’s a little less bubbly. Take Metaplanet, which saw its Bitcoin valuation dip below 1.0, losing 70% from June. It’s a financial rollercoaster-hold onto your hats! 🎢

Leverage Turns Crypto Dreams Into Nightmares

During 2025, these treasury companies splurged a staggering $42.7 billion in crypto-like kids in a candy store. But all that glitters is not gold; leverage, funny enough, can turn into a liability when the market goes south. Bitcoin prices soared above $126,000-amazing!-but a reversal revealed the shaky capital structures underneath. Leverage through convertible notes, PIPE deals, and perpetual preferred equity means these firms are walking a financial tightrope without a safety net. 🍿

While these companies only make up about 0.83% of the total crypto market cap, their heavy holdings mean a domino effect when the tide turns-leverage amplifies the chaos. As prices slide, forced liquidations could hit $4-6 billion, dwarfing last month’s ETF outflows of $2.33 billion. It’s like watching a game of Jenga-one wrong move, and the whole tower might tumble. 🧩

The Market’s Almost Dead: Buying Dried Up, Confidence Evaporated

Crypto buying has come to a halt as confidence evaporates faster than ice in summer. Companies that once eagerly bought cryptocurrencies are now selling them off-probably to pay off their mounting debts. MicroStrategy, the poster child for crypto adoption, saw its stock drop 60%, reminding us all that crypto and stocks are now linked in a tragic dance-one step forward, two steps back. 💃

Smaller firms, especially those invested in Solana, are feeling the squeeze: some NAVs have plunged 40%, spotlighting the dangers of concentrated bets and thin markets. Diversification? What’s that? In the world of crypto treasury, it’s more like playing the lottery-except you’re betting your entire house. 🏠

Retail investors-oh, those brave souls-started exiting early, further slamming the markets. November’s outflows hit $4 billion, and market-makers are less active, making markets even more volatile. It’s like a classic market crash, but with more emojis and less stability-think 2008 mortgage crisis, but with more blockchain. 💥

The crisis raises serious questions: can the digital asset treasury model survive a prolonged downturn? Will tighter risk controls and regulations save the day? Or are we destined to watch more firms sell their crypto just to stay afloat? In this wild sea of volatility, only time will tell whether the storm will pass-or drown us all. ⚓

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2025-11-21 04:52