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ETH treasury firm FG Nexus banks on reverse stock split to stop 90% slide

ETH treasury firm FG Nexus banks on reverse stock split to stop 90% slide

CryptopolitanCryptopolitan2026/02/10 09:00
By:Cryptopolitan

FG Nexus has announced that it will be implementing a 1-for-5 reverse stock split in an effort to attract institutional investors and improve its trading liquidity despite its low price. 

To remedy its falling stock value and attract institutional interest, FG Nexus has announced that it will be implementing a reverse stock split, reducing its authorized shares from 900 billion to 180 billion. 

The FG Nexus stock is down almost 100% over the last six months.

ETH treasury firm FG Nexus banks on reverse stock split to stop 90% slide image 0 FG Nexus is down almost 100% over the last year. Source: Google Finance

FG Nexus announces a reverse stock split 

FG Nexus Inc. officially announced today that its Board of Directors has approved a one-for-five reverse stock split set to take effect on Friday, February 13, 2026. 

The reverse split will automatically convert every five shares of current common stock into one share of new common stock. For example, a person who owns 100 shares before the split will own 20 shares afterward. 

In preparation for the change, the common stock has been assigned a new CUSIP number: 30329Y403. However, the company’s common stock will continue to be listed on the Nasdaq Capital Market under its existing ticker symbol, “FGNX.”

Kyle Cerminara, the Chairman and CEO of FG Nexus, explained that the goal is to make the stock more appealing to institutional investors who often avoid stocks with very low prices. By consolidating the shares, the company hopes to see a proportional increase in the price of each share. 

As of today, the company has 32,776,218 shares of common stock outstanding. After the split becomes effective, that number will drop to approximately 6,555,243 shares. Furthermore, the number of common shares that the company is authorized to issue will be reduced from 900 billion to 180 billion. 

The company stated that no fractional shares will be issued. Instead, the company’s transfer agent, Broadridge Financial Solutions, LLC, will provide a cash payment in place of that fractional share. 

Will the reverse split affect the value of previous investments?

Investors often worry during reverse splits about whether or not they are losing money, but the total value of the investments stays the same. The rights and privileges attached to the common stock also remain exactly the same. 

Recent market data shows that FG Nexus’s share price dropped significantly from a 52-week high of over $41 to recent lows near $1.93. 

The company is part of a growing group of companies that use cryptocurrency as a primary treasury asset and has explicitly stated that it wants to be a “gateway to digital-asset-powered finance.” This strategy includes staking its Ethereum (ETH) holdings to earn rewards and building a platform for the tokenization of real-world assets (RWAs).

As of late January 2026, FG Nexus reported holding 37,594 ETH. The company has also been very active in buying back its own shares. Between late 2025 and early 2026, the firm repurchased nearly 10 million shares. 

CEO Kyle Cerminara has argued that buying back shares when they trade below the company’s net asset value (NAV) is a great way to increase the value for remaining owners.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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