One Of The First Public Companies To Buy Bitcoin Is Selling Its Holdings But Claims It Remains 100% Bullish

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  • An early investor in Bitcoin (BTC) dumped all of its holdings in a move that left enthusiasts scratching their heads.
  • The company’s CEO asserts that selling 100% of its BTC does not mean that the company is not bullish on the asset class.’
  • Unsavoury events in the markets forced several companies to liquidate their holdings to ensure long-term survival.

Cypherpunk Holdings, a Canadian-based financial firm, sold off 100% of its Bitcoin holdings in the wake of blistering crypto winter, but the firm says it remains 100% bullish on the asset.

Still bullish as ever

Cypherpunk Holdings has joined the bandwagon of firms selling their Bitcoins to stay afloat amid unsavoury market conditions. The peculiar fact about the Cypherpunk Holdings sale was that it sold its entire holdings of BTC and ETH.

For a public company with the ticker symbol HODL, the decision to liquidate its entire holding raises eyebrows among community members. HODL is a crypto slang that connotes keeping possession of digital asset holdings regardless of the throes of a crypto crash.

CEO of Cypherpunk Jeffrey Gao argues that his company remains 100% bullish on Bitcoin despite the sale. “We’re in this business because we are net bullish on crypto over the long term,” he said.

Part of Gao’s argument was that even established digital asset firms like Voyager and  Three Arrows Capital were forced to liquidate their holdings. Thus, it was only a matter of putting its house in order and returning to the scene stronger.

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Cypherpunk’s sale of its digital holdings has been in the works since May, even before the implosions of Terra and 3AC. Gao notes that before the carnage began, Cypherpunk had gotten rid of nearly 40% of its holdings, with the last tranche being liquidated in June.

“You can be bullish on crypto, but you can still sell out of the market,” said Gao. He added that going forward; the company will pay significant attention to greater risk management.

More focus on Solana and Ethereum in the future

Cypherpunk’s CEO disclosed that in the future, the company would adopt a conservative approach toward Bitcoin. He expressed optimism about the potential of Solana and Ethereum in the long run while being relieved that the company avoided “capital destruction.”

“Over the longer term, at least at this point in time, I would be more bullish on Bitcoin conservatively than those other tokens,” Gao commented. “But over the next two or three months, I’m probably more partial towards Ethereum and Solana.”

His comments on Ethereum and Solana come at a time when both networks are facing turbulent times. For Ethereum, there are widespread reports that the Merge could lead to a network fork into Proof-of-Stake and Proof-of-Work.

On the other hand, Solana has been plagued with outages to the network since the start of the year. Slope, a Solana-based wallet provider, only last week, suffered a hack that cost users losses running into millions of dollars.