Cypherpunk Holdings (HODL) has announced that it has liquidated all of its Bitcoins (BTC) and Ethereum’s ETH treasury due to current market risks. The Canada-based investment firm sold 205.8209 Ether (ETH) for 227,000 USD. Whereas it was holding 214.7203 Bitcoin (BTC) which is sold for 4.7 million USD. Cypherpunk now has acquired a total of 6.38 million USD in proceeds from the latest sale of the two highest cryptocurrencies.
The company made the announcement through a blog post where it also disclosed its corporate plans and continuations.
President and CEO of the company Jeff Gao took the decision to sell off all the Bitcoins and Ether holdings because of higher market volatility. The current market situation has made the crypto holdings and digital assets riskier for both retail and institutional investors. Both BTC and ETH have lost more than half of their value from all-time highs. As a matter of fact, the shares of Cypherpunk have plunged to more than 45% on the Canadian Stock Exchange.
According to Chief Investment Officer Moe Adham, the company is shifting to accumulate as much cash as it can to battle the coming recession and inflation. As the risk hovers on the investors continuously, Cypherpunk will hold on to its treasury to recapitalize certain projects for its substantial revenue generation.
Currently, the firm holds $18.16 million Canadian dollars on hand. While it has allocated $1.93 million Canadian dollars on structured products.
Market Stress due to Crypto Winter
Many companies such as Riot Blockchain (RIOT) and Bitfarms (BITF) are selling off their BTC assets when the prices of the asset fell by 45%. According to an analysis by Arcane Research, selling off assets and industry-wide layoffs will continue to happen till the market turmoil is over. However, many crypto analysts and trading experts suggest holding their assets for fundamental long time growth in the coming future. As the crypto winter is a temporary phase, the prices of cryptocurrencies and stocks are likely to rise in near future. The only question is WHEN..?
Till the time the investors will sell their assets and store their money in a much less volatile and safer environment.