Risk of ‘Significant Drawdowns’ Pushes Cypherpunk Holdings to Sell Entire Stash of Bitcoin and Ethereum – Bitcoin News

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On Tuesday, the Canadian investment firm Cypherpunk Holdings Inc. announced that the company had sold all of its bitcoin and ethereum due to the “risk of further major declines”. The company transitioned its treasury to cash after selling 214.72 bitcoin and 205.82 ethereum as Cypherpunk Holdings continues to “see systemic risks spreading” across the crypto economy.

Cypherpunk Holdings Sells All of the Bitcoin and Ethereum on Its Balance Sheet

Crypt winter has done a lot of damage since bullfighting high prices, as more than $ 2 trillion has left the digital currency economy since the first week of November 2021. Today, the crypto economy is worth about $ 945 billion and bitcoin (BTC) costs just over $ 20K per unit range.

BTC decreases by more than 70% of the historical maximum ($ 69 thousand) on November 10, 2021, and Ethereum (ETH) has lost more than 77% since the ATH ($ 4,878) recorded on the same day. On June 28, 2022, or eight months later, the publicly listed Canadian investment company Cypherpunk Holdings revealed that it had disposed of all of its bitcoin and ether holdings.

Cypherpunk Holdings (CSE: HODL) (OTC Pink: CYFRF) was one of the many publicly listed companies that held bitcoin and ethereum in their balance sheet. The company’s update notes that the sale was due to risk and it said the crypto economy may see “significant declines” going forward.

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CEO and President of Cypherpunk Holdings Jeff Gao.

Cypherpunk Holdings sold approximately 214,7203 BTC and 205.8209 ETH and it received about $ 4,927,000 for the lot of crypto assets. The company said it currently has just over $ 14 million in “money and stables” on hand. After the sale, the CEO and president of Cypherpunk Holdings, Jeff Gao, talked about disposing of the digital assets for cash.

“Recently, Cypherpunk has liquidated all of its vaults BTC and ETH for cash and retired back to care, ”Gao wrote in an update regarding the company’s cryptocurrency assets and strategy.

“We continue to see ubiquitous risks spreading across the crypto ecosystem and, in our assessment of the risk reward and convenience costs involved in holding asset tokens, we believe the most prudent approach is to sit sideways while we wait for the volatile and illicit contagion to come. to its logical conclusion, “Gao said.” On the balance of probabilities, we see weaker price action pave the way to lower levels coming as reports of the number of chains imposing a ‘temporary’ suspension of withdrawals increase. “

The Cypherpunk Holdings executive went on to add:

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 seek to capitalize on compelling risky rewards when and when they present.

Company Sold 196.74 Bitcoin and 382 Ether Ahead of the June 28 Announcement and Mid-Fall of Terra LUNA

In addition, Cypherpunk Holdings discarded bitcoin (BTC) before the June 28 announcement, as it told investors on June 13 that it sold 96.74 BTC for $ 2.9 million and 50 ETH for $ 100K. The management of Cypherpunk Holdings 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 aftermath of Terra LUNA and UST, May 11, 2022 , Cypherpunk Holdings sale 100 BTC and 332 ETH for just over $ 4 million.

With Cypherpunk Holdings removed from the List of Bitcoin Treasuriesand Microstrategy’s recent purchase of 480 bitcoins, publicly listed companies hold 268,357. BTC worth $ 5.382 billion at current bitcoin exchange rates. Exchanged products hold 828,641 BTCcountries hold 50,699 BTCand private companies own 174,381 BTCaccording to the Bitcoin Treasuries list on June 29th.

Tags in this story

205.8209 ETH, 214.7203 BTC, Bitcoin, Bitcoin (BTC), BTC and ETH, BTC balance sheet, BTC Treasury, Canada, Canadian investment firm, Cash, cash and stables, cryptocurrencies, Cypherpunk Holdings, CEO of Cypherpunk Holdings, lows, Jeff Gao , risk, risky reward

What do you think of Cypherpunk Holdings discarding its bitcoin and ether because it believes “weaker price action” is coming? Let us know what you think about this topic in the comment section below.

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Jamie Redman

Jamie Redman is the News Leader at Bitcoin.com News and a financial technical journalist living 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 disruption protocols appearing today.




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