Fundamental Global to raise $5 billion to launch Ethereum treasury

• Fundamental Global filed an S-3 statement with the SEC to raise $5 billion to launch an Ethereum strategy.
• The company stated that it will sell its shares in batches to achieve the treasury goal.
• Fundamental Global earlier raised $200 million to kickstart its Ethereum reserve strategy.

Fundamental Global (FGF) filed an S-3 registration statement with the Securities & Exchange Commission (SEC) on Thursday to build an Ethereum-focused (ETH) treasury through a $5 billion shelf offering.

Fundamental Global to establish Ethereum treasury with $5 billion offering

Nasdaq-listed holding company Fundamental Global has filed an S-3 registration with the SEC to launch a $5 billion shelf offering. The company intends to use a majority of the proceeds from the offering to purchase ETH, with the rest allocated toward business operations.

It plans to issue the shares in phases, allowing flexibility in size, pricing, and terms based on market conditions. The filing outlined plans for Fundamental Global to raise $4 billion from the total offering via an at-the-market (ATM) sales agreement with ThinkEquity.

“In accordance with the terms of the market offering agreement, we may offer and sell shares up to $4,000,000,000 shares of our common stock from time to time through ThinkEquity,” the filing stated.

The company can sell shares gradually or in separate offerings based on market conditions.

The filing comes a few days after Fundamental Global revealed that it raised $200 million from a private placement to launch its Ethereum treasury. It also announced a rebrand to FG Nexus Inc., with a potential change of its NASDAQ ticker to FGNX and FGNXP.

CEO Kyle Cerminara said the company aims to acquire a 10% stake in the Ethereum network.

Fundamental Global joins several other companies that are adopting an Ethereum-focused treasury, including SharpLink Gaming, BitMine and Bit Digital.

SharpLink Gaming similarly revealed that it entered a purchase agreement with four institutional investors on Thursday. The deal aims to raise an estimated $200 million through an ATM offering priced at $19.50 per share to boost its Ethereum acquisition. The company also filed in July to raise $6 billion through a shelf offering, an increase from its initial $1 billion registration with the SEC.

Fundamental Global’s stock rose 2% in after-hours trading on Thursday, while ETH is up 6% within the past 24 hours following the filing.