FG Nexus (FGNX) stock rallied on Wednesday after the reinsurance, asset management, and merchant banking services company announced a master digital currency loan agreement with an unnamed lender. With this agreement, FG Nexus can now obtain loans in the form of digital currency or cash from the lender.
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FG Nexus also announced a Loan Term Sheet with the lender based on this master digital currency loan agreement. This October loan is for $10 million and is evergreen. That means it isn’t due until its Recall Delivery Date, which is 30 days after the lender delivers a Recall Request.
FG Nexus noted that the October Loan Term Sheet is supported by its collateral of Staked ETH. This is an Ethereum (ETH-USD) token that is staked or deposited to support blockchain operations. The Initial Collateral Level is 170%, and the Margin Call Rate is 140%.
FG Nexus Stock Movement Today
FG Nexus stock was up 4.11% in pre-market trading on Wednesday, following a 5.54% fall yesterday. The shares have decreased 84.36% year-to-date and have dropped 78% over the past 12 months.
Despite the news and stock rally, shares of FGNX haven’t seen much trading activity today. As of this writing, more than 66,000 shares have changed hands, compared to a three-month daily average of about 899,000 units.
Is FG Nexus Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for FG Nexus is Moderate Buy, based on two Buy ratings over the past three months. With that comes an average FGNX stock price target of $10, representing a potential 193.26% upside for the shares.
