U.S. publicly traded company Fundamental Global Inc. plans to raise up to $5 billion to establish an ETH strategic reserve

BlockBeats News, August 8th, Fundamental Global Inc., a US-listed company, announced in its latest S-3 filing with the SEC that the company plans to issue securities from time to time in an amount not exceeding $5 billion, with the specific issuance amount, price, and terms to be determined at each issuance. The company plans to use the vast majority of the net proceeds from this issuance of common stock to acquire Ethereum (ETH), with the remaining funds earmarked for working capital needs, general corporate purposes, and operating expenses.

The company stated that it plans to hold ETH as a long-term reserve asset, aiming to accumulate and increase its overall ETH holdings and significantly raise the per-share amount of ETH held through a professional reserve strategy. The reserve strategy will focus on increasing the amount of ETH through capital-raising activities and reserve activities, including staking, restaking, liquid staking, and other decentralized finance activities. ETH is expected to become a primary reserve asset in the future, with a focus on maximizing ETH accumulation and value appreciation while maintaining strict control and supervision over these digital assets.

Fundamental Global Inc. is a holding company registered in Nevada. Currently, the company's common stock and Series A Preferred Stock are listed on the Nasdaq under the tickers "FGF" and "FGFPP," respectively. The company currently operates through the following business segments: digital assets, commercial banking, reinsurance, and management services.

It is worth noting that the company's current market value is only $46.02 million and it had announced at the end of July the sale of 40 million shares of common stock at a price of $5 per share, raising a total of $200 million to kickstart its Ethereum treasury strategy. Participants in this initiative include Galaxy Digital, Kraken, Hivemind Capital, Syncracy Capital, Digital Currency Group (DCG), and Kenetic.