On Tuesday, Canada-based investment firm Cypherpunk Holdings Inc. Ethereum after Cypherpunk Holdings sold 214.72 Bitcoin and 205.82 Ethereum as it “continues to see systemic risk propagating” throughout the crypto economy, the company has moved its treasury into cash.
Cypherpunk Holdings sells all of the bitcoin and ethereum on its balance sheet
Crypto winter has done a lot of damage since the bull run price highs, as over $2 trillion has left the digital currency economy since the first week of November 2021. Today, the crypto economy is worth roughly $94.5 billion, withBitcoin (BTC)coasting just above the $20K per unit range.
BTChas fallen over 70% from its all-time high on November 10, 2021 ($69K) andEthereum (ETH)has lost over 77% from its ATH ($4878) recorded that same day. Eight months later, on June 28, 2022, Cypherpunk Holdings, a publicly traded Canadian investment firm, revealed that it had dumped all of its bitcoin and ether holdings.
Cypherpunk Holdings (CSE: HODL) (OTC Pink: CYFRF) was one of many listed companies that had Bitcoin and Ethereum on their balance sheet. An update from the company noted that the sale was due to risk, and it said the crypto economy may see “significant drawdowns” in the future.
Cipherpunk Holdings sold approximately 214.7203 of BTCand 205.8209 of ETH, which yielded about $4,927,000 for the crypto asset lot. The company now has just over $14 million worth of “cash and stables” on hand. After the sale, Jeff Gao, CEO and president of Cypherpunk Holdings, spoke about dumping digital assets for cash.
“Recently, Cypherpunk liquidated all of its own holdings ofBTCandETHfor cash and pulled them back into the vault,” Gao wrote in aupdateon the company’s cryptocurrency holdings and strategy.
“We continue to see systemic risk propagated throughout the crypto ecosystem and believe that the wisest approach in assessing the risk reward and opportunity costs associated with holding asset tokens is to sit on the sidelines as we wait for the volatility and illiquidity contagion to reach its logical conclusion ” stated Gao.” On the balance of probabilities, we see weak price action paving the way for the coming low as reports of an increasing number of chains imposing “temporary” stoppages on withdrawals.”
The Cypherpunk Holdings executive continued.
Until our views on market conditions change, our financials remain cash; Cypherpunk maintains a long-term bullish outlook on crypto and now plans to aggressively take advantage of any attractive risk-reward opportunities that arise.
The firm sold 196.74 bitcoin and 382 Ether before the June 28 announcement and during the fallout of Terra LUNA
In addition, Cypherpunk Holdings dumpedBitcoin (BTC)before the June 28 announcement and sold 96.74 toinvestors on June 13, as reported byBTCfor $2.9 million and 50ETHfor $100,000.Cypherpunk Holdings management also sold its last block of 500,000 shares of Animoca for a “234% realized gain” and decided to unload its stake in Animoca Brands.Terra LUNA and In the UST fallout, on May 11, 2022, Cypherpunk Holdings sold100 BTCand sold 332 ETHfor just over $4 million.
with Cypherpunk Holdings being removed from theremoved from the Bitcoin Government Bond Listand with MicroStrategy’s recent purchase of 480 bitcoins, the listed company now holds 268,357 bitcoinsBTCworth 5,382 million at the current bitcoin exchange rate. The listed entity holds 828,641BTC. The State holds 50,699BTCPrivate companies hold 174,381BTC; BTCaccording to the June 29 Bitcoin Treasuries list.
What do you think about Cypherpunk Holdings dumping Bitcoin and Ether because they believe a “weak price move” is coming? Let us know what you think about this subject in the comments section below.
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