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One bit of news that is much in circulation recently is that Cypherpunk Holdings Inc., the Canada-based investment firm, has sold its Bitcoin and Ethereum holdings. This is what the firm might have found appropriate amidst the current volatility of the crypto market. Cypherpunk Holdings stated that it has sold 205.8209 ETH for proceeds CAD$293k and 214.7203 BTC for proceeds CAD $6,086,283. The treasury of Cypherpunk Holdings presently has no Bitcoin holding and no Ethereum (ETH). Its total proceeds from the sale of cryptocurrencies are CAD$6,378,787. Now the question is whether other institutional investors will follow suit.
The CIO of Cypherpunk Holdings is reported to have made the following comment: "Crypto market remains in a deep risk-off environment. There remains a risk of further significant drawdowns in asset prices. In the interest of all shareholders, the company transitioned its treasury to cash." The comment tells the story quite comprehensively about their Bitcoin holding. But what about other crypto investment /exchange firms/institutional investors?
Consider the counter-case of the Virginia-based BI software maker known as MicroStrategy. According to the company, it has 121,044 Bitcoin holding, surpassing the tech giant Tesla, the second position holder, by roughly 2.5 times. MicroStrategy's Bitcoin is now stated to be worth roughly US$4.4 billion. It is close to 25% more than the company's market capitalization. MicroStrategy has no plan yet to sell off its crypto assets worth a staggering US$3.5 billion as it has not faced any adverse financial situation due to the downfall of the cryptocurrencies to the extent of nearly 50%. The company's Bitcoin reserve is worth nearly US$850 million and the amount is more than what it had invested. What is very significant is that MicroStrategy proposes to buy more cryptocurrencies from the volatile crypto market.
Take another important case. Aker ASA, a Norwegian industrial investment company, vowed to make a "forceful contribution" to the crypto market despite losing US$16 million on its crypto investment. It has already spent nearly US$60 million on Bitcoin and is in no mood to sell them off. It remains optimistic that the marriage of blockchain technology and Bitcoin will bring in exciting industrial opportunities in the near future, if not exactly now.
So, it is evident that no singular course of action is being preferred by the crypto investment firms or institutional investors on Bitcoin holding. What is perhaps clear is that a few stronger actors in the crypto market are ready to stick to the beleaguered currencies with the hope that things would change for the better while the lesser actors think that it is wise to go out of the global crypto market.
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