Case note · FG Nexus / Galaxy

FG Nexus / Galaxy: fee-floor reset → full treasury exit → contract-currentness question.

FG Nexus provides a useful control for a different lifecycle problem: a discretionary ETH management agreement remained part of the public record while the issuer later sold all digital assets and exited the digital-asset business. The economic mandate and the operating strategy therefore have to be versioned separately.

Original manager economics

FG Nexus entered into an Asset Management Agreement with Galaxy Digital Capital Management in July 2025. Galaxy was appointed to provide discretionary management over designated account assets under a long-only ETH strategy that could include staking, restaking and liquid staking.

FieldPublicly disclosed term
ProviderGalaxy Digital Capital Management LP
RoleDiscretionary management of designated account assets under a long-only ETH strategy
Recurring feeTiered asset-based fee ranging from 0.75% to 1.25% per year
Original minimum$83,333.33 per month, equivalent to $1.0 million per year
Initial termThree years from July 2025
Ordinary company exitAfter the three-year point, 90 days' written notice
Cause terminationEither party could terminate for Cause under the filed mechanics

The fee floor changed while the provider relationship remained

Later public filings say FG Nexus and Galaxy suspended or eliminated the contractual minimum fee beginning December 1, 2025 and intended to revisit the minimum based on the scale of digital assets and services. The tiered asset-based fee remained part of the disclosed structure.

Currentness implication: a fee schedule is not one static field. The same agreement family can preserve its percentage tiers while changing a minimum-dollar floor that materially affects realized economics at smaller asset levels.

Then the issuer exited the entire digital-asset business

In June 2026, FG Nexus' Board authorized management to exit the digital-asset business and reallocate capital toward real estate. The company reported that it completed the sale of all previously held digital assets before June 30, 2026 and no longer held cryptocurrency assets at quarter-end. Its digital-assets business was presented as discontinued operations in the June 2026 Form 10-Q.

The same filing states that the company had used a third-party asset manager to manage and stake ETH and that asset-management and other fees were recorded as operating expenses. It also disclosed liabilities associated with exiting the digital-asset business.

But strategy exit is not the same thing as a disclosed contract termination

The June 2026 quarterly filing does not name Galaxy in its discontinued-operations discussion and does not expressly state that the Galaxy Asset Management Agreement had been terminated. Because the company had sold all digital assets, the mandate no longer had the same funded operating base, but a decision-grade record should not infer contractual termination from zero crypto holdings alone.

Decision rule: store business-strategy status, funded-asset status and contract status as separate fields. “No longer holds crypto” does not by itself prove that every related contract was formally terminated.

Why this matters for a provider stress test

FG Nexus / Galaxy adds a useful lifecycle scenario to the public comparison set: manager agreement → fee-floor reset → strategy reversal → asset liquidation → discontinued operations → unresolved public contract currentness. That is materially different from a clean mutual termination such as SharpLink or a negotiated damages settlement such as Forum Markets.

Related research

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Public-source factual commercial research only. No legal interpretation of contract enforceability, no fairness or fiduciary conclusion, no accounting or investment opinion, and no recommendation concerning any provider.

Board / CFO review path