Risk of ‘Substantial Drops’ Forces Cypherpunk Holdings to Sell Entire Caches of Bitcoin and Ethereum – Bitcoin News

On Tuesday, Canadian-based investment firm Cypherpunk Holdings Inc. announced that the company has sold all of its bitcoin and ethereum amid “risk of further significant declines.” As Cypherpunk Holdings continues to see “systemic risks spreading” in the crypto economy, the company cashed out after selling 214.72 bitcoins and 205.82 ethereum.

Cypherpunk Holdings Sells All Bitcoin and Ethereum on Balance Sheet

With more than $2 trillion leaving the digital currency economy since the first week of November 2021, the crypto winter has done a lot of damage since the bull run prices soared. Today, the crypto economy is valued at approximately $945 billion, with bitcoin (BTC) hovering at just over $20,000 per unit range.

BTC is down more than 70% from its all-time high ($69k) on November 10, 2021, and ethereum (ETH) has lost more than 77% since ATH ($4,878) recorded the same day. On June 28, 2022, or eight months later, publicly traded Canadian investment firm Cypherpunk Holdings announced that it was abandoning all bitcoin and ether holdings.

Cypherpunk Holdings (CSE: HODL) (OTC Pink: CYFRF) was one of many publicly traded companies that held bitcoin and ethereum on its balance sheet. The update from the company stated that the sell-off was due to risk and that the crypto economy could see “significant declines” going forward.

Jeff Gao, CEO and chairman of Cypherpunk Holdings.

Cypherpunk Holdings has sold approximately 214,7203 BTC and 205,8209 ETH and received approximately $4,927,000 for multiple crypto assets. The company said it currently has just over $14 million in “cash and stables” on hand. After the sale, Jeff Gao, CEO and chairman of Cypherpunk Holdings, talked about converting digital assets into cash.

“Cypherpunk recently cashed out all treasury holdings in BTC and ETH and was back in custody,” Gao wrote in an update on the company’s cryptocurrency holdings and strategy.

“We continue to see systemic risks radiating throughout the crypto ecosystem, and in our assessment of the risk reward and opportunity costs involved in holding asset tokens, we believe the most prudent approach is to sit on the sidelines while we wait for volatility. Gao said that the contagion of illiquidity would come to its logical conclusion. “On the balance of possibilities, we see weaker price action as the number of chains applying ‘temporary’ suspensions to withdrawals increases, paving the way for lower highs.”

The Cypherpunk Holdings executive continued, adding:

Until our thesis on market conditions changes, our treasury will remain in cash. Cypherpunk maintains its long-term bullish outlook on crypto and currently plans to actively capitalize on compelling risk reward opportunities as and when they exist.

Company Sells 196.74 Bitcoins and 382 Ether Before The June 28 Announcement and Mid-Terra LUNA Fallout

Also, Cypherpunk Holdings dropped bitcoin (BTC) ahead of the June 28 announcement, as it said it sold 96.74 BTC for $2.9 million and 50 ETH for $100,000 on June 13 to investors. Cypherpunk Holdings management has also decided to divest shares of Animoca Brands, as the company has sold the last block of 500,000 Animoca shares for “234% realized profit.” 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 delisting from Bitcoin Treasures and Microstrategy’s recent purchase of 480 bitcoins, public companies hold 268,357 BTC, worth 5,382 billion at current bitcoin exchange rates. According to the Bitcoin Treasures list on June 29, exchange-traded items hold 828,641 BTC, countries hold 50,699 BTC, and private companies hold 174,381 BTC.

Tags in this story

205.8209 ETH, 214.7203 BTC, Bitcoin, Bitcoin (BTC), BTC and ETH, BTC balance, BTC Treasury, Canada, Canadian based investment firm, Cash, cash and stables, crypto assets, Cypherpunk Holdings, CEO of Cypherpunk Holdings, disadvantages, Jeff Gao, risk, risk reward

What do you think of Cypherpunk Holdings abandoning bitcoin and ether because it believes “weak price action” is coming? Let us know what you think about it in the comments section below.

Jamie Redman

Jamie Redman is the News Leader at Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols that emerged today.

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