Panic or wisdom? This famous crypto investment company is selling all its Bitcoins and Ethereums!

Canada-based investment firm Cypherpunk Holdings (HODL) has ditched all of its bitcoin and ether holdings to deal with current market risks.

The company sold 205.8209 ether (ETH), Ethereum’s original token, for C$293,000 ($227,000) and 214,7203 bitcoins (BTC) for approximately C$6.09 million ($4.7 million). † The proceeds from those sales will be C$6.38 million ($5 million), according to an announcement on Tuesday.

The company said it has $18.16 million ($14.1 million) in cash and stablecoins, adding that it also has about C$1.93 million ($1.5 million). dollars) to structured products with a repurchase period of 30 days.

Cypherpunk chairman and CEO Jeff Gao said the decision to dump all of the company’s bitcoin and ether holdings followed increasing market volatility, making token ownership an asset and increasingly risky for investors.

Both bitcoin and ether have lost more than half their value in the past year, reaching a 52-week low earlier this month. Shares of the company have fallen 50% on the Canadian stock exchange this year.

“We believe the most prudent approach is to sit on the sidelines until the contagion of volatility and illiquidity comes to a logical conclusion,” Gao said in the statement. “Overall, we see weaker price action paving the way for lower levels going forward as reports of the number of channels imposing a ‘temporary’ hold on withdrawals grow,” he said.

Gao noted that Cypherpunk will maintain a “long-term optimistic view” of cryptocurrencies and seek to capitalize on future investment opportunities in the space “as they arise”.

Cryptocurrency markets have plunged into a particularly frosty crypto winter, with investors reacting to decades of high inflation by selling riskier assets, driving the markets lower.

Bitcoin mining companies, including Riot Blockchain (RIOT) and Bitfarms (BITF), collectively sold more than 100% of their total output in May as bitcoin’s value fell 45%, according to an Arcane Research analysis report.

As the headwinds in the economy continue to pose solvency problems for cryptocurrency lenders and cause massive layoffs across the industry, investors will likely continue to sell their cryptocurrency assets and put their money in what they perceive to be safer and less volatile securities until the market recovers.

Moe Adham, chief investment officer of Cypherpunk Holdings, said that until the market takes a turn for the worse, the risks for cryptocurrency investors remain “significant”.

“Crypto markets remain in a deep risk environment,” Adham said. “There remains a risk of further significant declines in crypto sector asset prices,” he added.

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Thomas Estimbre
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