"North Carolina-based ether holder FG Nexus sold about $41.5 million of its tokens recently to fund its share buyback program. Its market cap is $104 million, while the crypto it holds is worth $116 million. Florida-based life sciences company turned ether buyer ETHZilla recently sold about $40 million worth of its tokens, also to fund its share buyback program."
"Sequans Communications, a French semiconductor company, sold about $100 million of its bitcoin this month in order to service its debt, in a sign of how some companies that borrowed to fund crypto purchases are now struggling. Sequans' market capitalization is $87 million, while the bitcoin it holds is worth $198 million. Georges Karam, chief executive of Sequans, said the sale was a "tactical decision aimed at unlocking shareholder value given current market conditions.""
"While bitcoin and ether sellers can find buyers, companies with more niche tokens will find it more difficult to raise money from their holdings, according to Morgan McCarthy. "When you've got a medical device company buying some long-tail asset in crypto, a niche in a niche market, it is not going to end well," he said, adding that 95 percent of digital asset treasuries "will go to zero.""
Digital-asset treasury sell-offs accelerated as firms liquidated crypto holdings to fund share buybacks, service debt, and support equity prices. FG Nexus sold about $41.5 million of ether to finance a buyback while its market capitalization is $104 million and crypto holdings are worth $116 million. ETHZilla sold roughly $40 million of ether for a share repurchase. Sequans sold about $100 million of bitcoin to service debt despite holding bitcoin valued at $198 million against an $87 million market cap. Niche-token treasuries face severe liquidity risk, with a large share projected to lose most value.
Read at Ars Technica
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