On Tuesday, the Canada-based investment firm Cypherpunk Holdings Inc. announced that the company has sold all of its bitcoin and ethereum due to the “risk of further significant drawdowns.” The company has transitioned its treasury to cash after selling 214.72 bitcoin and 205.82 ethereum as Cypherpunk Holdings continues “to see systemic risks propagating” across the crypto economy.
Cypherpunk Holdings Publishes Every Bit of Bitcoin and Ethereum in Its Balance Sheet
Crypto winter has done a lot of damage since the bull run’s price highs, as more than $2 trillion has left the digital currency economy since the first week of November 2021. Today’s crypto economy has a value of $945billion and bitcoin (BTC ) hovers just above $20K per unit.
BTC’s drop is more than 70% from its November 10th all-time record ($69K), and ethereum has dropped more 77% in the time since the $4,878 ATH recorded that day. Cypherpunk Holdings, a publicly traded Canadian investment firm, announced that it had disposed of all its bitcoins and ether assets on June 28, 2022. This was eight months after the announcement.
Cypherpunk Holdings, CSE: HODL), (OTC Pink : CYFRF), was among the publicly traded companies that had bitcoin and ethereum in its balance sheets. The update from the company notes that the sale was due to risk and it said the crypto economy may see “significant drawdowns” going forward.
Cypherpunk Holdings was able to sell approximately 214.7203 BTC as well as 205.8209 Eth, and the company received around $4,927,000 from its lot of crypto assets. The company said that it currently has just over $14 million worth of “cash and stables” on hand. Jeff Gao was Cypherpunk Holdings’ CEO and President. He spoke of the need to sell the digital assets in exchange for cash.
“Recently, Cypherpunk liquidated all of its treasury holdings in BTC and ETH for cash and withdrew back to custody,” Gao wrote in an update concerning the company’s cryptocurrency holdings and strategy.
“We continue to see systemic risks propagating throughout the crypto ecosystem and, in our assessment of the risk reward and opportunity costs involved in holding asset tokens, we believe that the most prudent approach is to sit on the sidelines as we wait for the volatility and illiquidity contagion to come to its logical conclusion,” Gao said. “On the balance of probabilities, we see weaker price action opening the way to lower levels to come as reports of the number of chains imposing ‘temporary’ suspension on withdrawals increases.”
Cypherpunk Holdings Executive continued to add:
Our treasury is cash until our market thesis changes. Cypherpunk remains bullish about crypto for the long term and plans to continue actively seeking out compelling risks and rewards opportunities, as they arise.
The Company sold 196.74 Bitcoins, 382 Ether and the Terra LUNA Fallout.
Cypherpunk Holdings sold bitcoin (BTC), before the announcement on June 28, as it stated that it sold 96.74 BTC ($2.9 Million) and 50 Ether ($100K) to investors. Cypherpunk Holdings’ management also decided to unload shares of Animoca Brands, as it sold the company’s last block of 500,000 Animoca shares for “a realized profit of 234%.” Amid the Terra LUNA and UST fallout, on May 11, 2022, Cypherpunk Holdings sold 100 BTC and 332 ETH for just over $4 million.
With Cypherpunk Holdings removed from the Bitcoin Treasuries list, and Microstrategy’s recent purchase of 480 bitcoins, publicly-listed companies hold 268,357 BTC worth 5.382 billion at current bitcoin exchange rates. According to the Bitcoin Treasuries List on June 29, exchange-traded products have 828,641 BTC and countries have 50,699 BTC. Private companies hold 174,381 BTC.
What do you think about Cypherpunk Holdings dumping its bitcoin and ether because it believes “weaker price action” is coming? Please comment below to let us know your thoughts on this topic.
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