Cypherpunk Holdings sells all bitcoin and ether The Ecoinomic

Canadian-based investment firm Cypherpunk Holdings (STOCK CODE HODL) has dumped all of its bitcoins and ether holdings to address current market risks.

The company sold 205.8209 ether (ETH) for $227,000 and 214,7203 bitcoins (BTC) for about $4.7 million. In total, Cypherpunk earned $5 million from the sale of all BTC and ETH.

The company said it has C$18.16 million ($14.1 million) in cash and stablecoins, adding that it also has about C$1.93 million ($1.5 million) allocated to structured products with a 30-day return notice.

Cypherpunk Holdings sells all bitcoin and ether

Cypherpunk Chairman and CEO Jeff Gao said the company's decision to dump all bitcoins and ether held due to increased market volatility made holding asset tokens increasingly risky for investors.

Both bitcoin and ether have lost more than half their value in the past year, sliding to a 52-week low earlier this month. The company's shares have fallen 50 per cent this year on the Canadian stock exchange.

"We believe that the most cautious approach is to sit on the sidelines as we wait for the spread of volatility and under-liquidity to come to its logical conclusion."

Gao added: "As calculated, we see a weaker buying force, paving the way for new lows, especially as the suspension of withdrawals in chains and defi protocols is increasing."

Gao noted that Cypherpunk will maintain a "long-term bullish outlook" for cryptocurrencies and will look to take advantage of future investment opportunities as they emerge.

Crypto Winter

The cryptocurrency market has sunk into an icy crypto winter as investors react to decades-high Inflation by selling off riskier assets, leading to a market downturn.

For example, bitcoin miners including Riot Blockchain (RIOT) and Bitfarms (BITF) collectively sold 100% of their entire output in May when the value of bitcoin dropped by 45%, an analysis by Arcane Research showed.

As economic difficulties continue to pose solvency problems for cryptocurrency lenders and prompt industry-wide layoffs, investors are likely to continue to sell off their crypto assets and move their money into places they consider more secure, Value repositories are less volatile, until the market is on the rise.

Cypherpunk Holdings chief investment officer Moe Adham said.

"The cryptocurrency market remains in a high-risk environment. There is still a risk of further significant declines in asset prices in the cryptocurrency sector."