On Tuesday, Canada-based investment firm Cypherpunk Holdings Inc. announced that it had sold all of its bitcoin and ethereum due to “the risk of further significant drawdowns.” As Cypherpunk Holdings continues to “see systemic risks spread across the cryptoeconomy,” the company has converted its treasury into cash after selling 214.72 bitcoin and 205.82 ether.
Cypherpunk Holdings sells all Bitcoin and Ethereum on its balance sheet
The crypto winter has done a lot of damage since the price highs of the bull market as over $2 trillion Has left the digital currency economy since the first week of November 2021. Today, the crypto economy is worth about $945 billion, Bitcoin (BTC) It is sliding along the range of just over $20,000 per unit.
bitcoin Down more than 70% from its November 10, 2021 all-time high of $69,000, and Ethereum (ETH) Since the ATH ($4,878) recorded on the same day, it has fallen by more than 77%. On June 28, 2022, eight months later, Canadian-listed investment firm Cypherpunk Holdings revealed that it had dumped all of its bitcoin and ether assets.
Cypherpunk Holdings (CSE: Holder) (OTC Pink: CYFRF) is one of many public companies holding Bitcoin and Ethereum on its balance sheet. The company’s latest update pointed to the sale as a risk and said there could be a “significant drawdown” in the crypto economy.
Cypherpunk Holdings sold about 214.7203 bitcoin and 205.8209 Ethereum The gain on a large number of crypto assets is around $4,927,000. The company said it currently has more than $14 million worth of “cash and stables” on hand. After the sale, Cypherpunk Holdings CEO and President Jeff Gao talked about dumping the digital asset in exchange for cash.
“We continue to see systemic risk spreading across the crypto ecosystem, and as we assess the risk-reward and opportunity costs involved in holding asset tokens, we believe the most prudent approach is to wait for volatility and illiquidity to spread. A logical conclusion was drawn,” Gao said. “On a balance of probabilities, we see weaker price action opening the way to lower levels as reports increase in the number of chains implementing a ‘temporary’ moratorium on withdrawals.”
The Cypherpunk Holdings executive went on to add:
Our treasury will remain in cash until our arguments about market conditions change. Cypherpunk maintains its long-term bullish outlook for cryptocurrencies and currently plans to actively seek to capitalize on compelling risk-reward opportunities.
Company sold 196.74 BTC and 382 ETH ahead of June 28 announcement and in Terra LUNA Fallout
Additionally, Cypherpunk Holdings sold Bitcoin (BTC) Before the June 28 announcement, because it Tell June 13 Investors said it sold 96.74 bitcoin $2.9 million and 50 Ethereum 100,000. Management of Cypherpunk Holdings also decided to sell its stake in Animoca Brands after it sold the company’s last 500,000 Animoca shares, “realizing a 234% profit.”among Terra LUNA and UST RadiationMay 11, 2022 Cypherpunk Holdings Sell 100 bitcoin and 332 Ethereum Just over $4 million.
With Cypherpunk Holdings from List of Bitcoin Treasury Bondsand micro-strategic 480 bitcoins recently purchasedListed companies hold 268,357 bitcoin Valued at $5.382 billion at current bitcoin exchange rates. Exchange-traded product holdings 828,641 bitcoinState holds 50,699 bitcoinPrivate companies own 174,381 bitcoinaccording to the June 29 Bitcoin Treasury bond list.
What do you think of Cypherpunk Holdings dumping its bitcoin and ether as it believes “price weakness” is coming? Let us know what you think about this topic in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.