FG Nexus Inc. has authorized an open‑ended preferred share repurchase program that allows the company to buy back up to 894,580 shares of its Series A preferred stock. The program is structured to comply with Rule 10b‑18 of the Securities Exchange Act, ensuring that any repurchases are conducted in a manner that protects shareholders and maintains market integrity.
The decision to repurchase preferred shares is part of FG Nexus’s broader strategy to streamline its capital structure and reduce dividend obligations. By retiring preferred shares that carry an 8.00 % dividend rate (equivalent to a $0.50 quarterly payment per share), the company can lower its fixed payout commitments and free capital for other priorities, notably its growing Ethereum treasury program. The move signals management’s confidence in the company’s financial position despite recent operating losses, and it aligns with the firm’s pivot toward digital asset holdings and tokenized real‑world assets.
Financially, FG Nexus reported a net loss of $18.1 million for the trailing twelve months ending September 30 2025, following a $2.57 million loss in 2024. The preferred share buyback, therefore, represents a proactive step to improve capital efficiency and demonstrate fiscal discipline while the company continues to invest heavily in its Ethereum treasury, which has accumulated over 50,000 ETH (worth roughly $210 million at peak valuations).
Management emphasized that the repurchase authority provides “additional flexibility to optimize our capital structure and return value to our shareholders when market conditions present attractive opportunities.” The statement underscores the firm’s intent to balance shareholder returns with strategic investment in its digital asset platform, a key component of its long‑term growth plan.
The program follows a $200 million common share repurchase initiative announced in October 2025, illustrating FG Nexus’s commitment to returning capital to investors across multiple share classes while pursuing its new business focus on blockchain and tokenization. Together, these actions reflect a coordinated effort to strengthen the company’s balance sheet and support its transition from legacy reinsurance operations to a technology‑driven asset management model.
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