Fundamental Global Plans to Raise Up to $5 Billion, Potentially for Acquisitions of Ether

Fundamental Global Submits Shelf Registration to SEC

Fundamental Global, a U.S. Ethereum financial company (stock code: FGF), has submitted a “shelf registration” to the U.S. Securities and Exchange Commission (SEC) to allow the company to issue up to $5 billion in securities over a period of time. This move could provide the company with an opportunity to significantly increase its holdings of Ethereum (ETH).

The S-3 filing grants Fundamental Global the flexibility to issue various types of securities, including common stock, preferred stock, warrants, and debt instruments, either in one go or in multiple tranches. While the company has not committed to raising the full amount nor specified a precise timeline for fundraising, the prospectus mentions that the proceeds may be used for its recently announced Ethereum financial reserve strategy.

If Fundamental successfully raises $5 billion and uses the entire amount to purchase Ethereum, its scale would far exceed that of other publicly listed companies with Ethereum reserves, including BitMine, SharpLink Gaming, and Ether Machines.

Fundamental Global was originally a reinsurance and asset management holding company. In July of this year, the company initiated a $200 million private placement to kickstart its Ethereum financial strategy, which includes acquiring Ethereum, participating in staking, and engaging in decentralized finance (DeFi) activities to maximize the number of Ethereum held per share.

Fundamental has announced the completion of the $200 million private placement this week, with investors including Galaxy Digital, Kraken, Hivemind Capital, Syncracy Capital, Digital Currency Group, and Kenetic.