As the price of Bitcoin (BTC) drops to $20,095, Cypherpunk becomes one of the latest investment firms to sell 100% of its two digital assets for capital.
Cypherpunk Holdings, a Toronto-based crypto investment organization founded in 2018, has reported that it dumped all of its Bitcoin (BTC) and Ethereum (ETH) holdings amid the current crypto bear market.
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According to the official announcement issued on June 28, Cypherpunk sold 214.7203 Bitcoin (BTC) for roughly $4.7M and 205.8209 Ethereum (ETH) for $227K, accruing a total of $5M in proceeds. Jeff Gao, the CEO and President of Cypherpunk, noted that the company decided to sell 100% of its holdings in BTC and ETH due to the harsh market conditions, which made these digital assets way too risky. He added:
“We believe that the most prudent approach is to sit on the sidelines as we wait for the volatility and illiquidity contagion to come to its logical conclusion.”
The company mentioned that it will keep its treasury in cash until the market unwinds. The CIO of Cypherpunk Moe Adham noted that such a transition will allow the company to remain prepared for the investment possibilities in the near future. He concluded:
“Crypto markets remain in a deep risk-off environment. There remains risk of further significant drawdowns in asset prices across the crypto sector.”
It seems as though Cypherpunk isn't the only player in the crypto ecosystem that is hedging its bet. Back in May, two BTC mining businesses dubbed Bitfarms (BITF) and Riot Blockchain (RIOT) dumped all of their assets in response to Bitcoin's 45% decline in value.
However, some of the major organizations are facing the recent bloodbath in the crypto market without any fear whatsoever. For instance, earlier in June, the crypto wallet firm Exodus stated that it would keep paying its employees for their work in Bitcoin (BTC) as it has been doing so for the past 7 years now.
On top of that, several crypto giants also see the market turmoil as a perfect opportunity to expand. On June 13, Changpeng Zhao (CZ), the CEO of the largest crypto exchange Binance, noted that the company is still looking for new talents that can help the firm grow even more.