Canadian-based investment firm Cypherpunk Holdings (HODL) has sold all its Bitcoin and Ethereum holdings to remove current market risks. Here are the details…
Cypherpunk Holdings has sold its Bitcoin and Ethereums
The company sold 205,8209 Ethereum for approximately $227,000 and 214,7203 Bitcoin for approximately $4.7 million. According to the statement made on Tuesday, the company generated a total revenue of $ 5 million from sales. The company announced that it has $14.1 million in cash and stablecoins. He also added that approximately $1.5 million has been allocated to structured products with a 30-day refund notice. Cypherpunk President and CEO Jeff Gao has announced the company’s decision to divest all of its Bitcoin and ETH holdings. He said the decision comes in the wake of increased market volatility that has made the coins increasingly risky for investors.
As Cryptokoin.com reported, both Bitcoin and Ethereum lost more than half of their value last year. It fell to 52-week lows earlier this month. The company’s shares have lost 50 percent on the Canadian stock market this year. “We believe the most prudent approach is to stay on the sidelines while we wait for volatility and illiquidity to come to a logical conclusion,” Gao said in a statement.
We’re looking at reports of increasing numbers of people ‘temporarily’ suspending withdrawals. In light of the possibilities, we see weaker price action paving the way for lower highs.
Cryptocurrency winter is here
Gao stated that Cypherpunk will maintain a “long-term bullish outlook” on cryptocurrencies. He noted that he will always try to take advantage of future investment opportunities in the field. Cryptocurrency markets have entered a particularly “icy” crypto winter as investors reacted to decades of high inflation by selling riskier assets and markets rebounded. For example, according to an analysis by Arcane Research; Bitcoin mining companies, including Riot Blockchain and Bitfarms, have sold more than 100 percent of the total mined coins as the value of Bitcoin dropped 45 percent in May.
Economic fluctuations are posing solvency issues for crypto lending companies. While spurring massive industry-wide layoffs, investors are likely to continue selling their cryptocurrency holdings and move their money to safer, less volatile stores of value. Cypherpunk Holdings Chief Investment Officer Moe Adham said the risks will remain “significant” for crypto investors until the market makes a comeback. He noted that there is a large risk of price declines across the market.
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