Small Canadian company listed in the stock market as HODL has capitulated

[bbc.reporter]

It appears reality is beginning to make its appearance on this institutional investor hehe. However, capitulating on what might be the bottom of the bear market is clearly one of the biggest mistakes in holding bitcoin as an investment. The other big mistake is buying more bitcoin on leverage while the whole market is deleveraging.



TORONTO, ONTARIO, June 28, 2022. ‐ Cypherpunk Holdings Inc. (CSE: HODL, OTC: CYFRF) (“Cypherpunk” or, the “Company“), a sector leader for blockchain, metaverse, privacy and cryptography focused investments, would like to announce updates on Cryptocurrency Holdings and Company’s Strategy.

Moe Adham, CIO of Cypherpunk Holdings commented: “Crypto markets remain in a deep risk off environment. There remains risk of further significant drawdowns in asset prices across the crypto sector. In the interest of all shareholders, the company transitioned its treasury to cash. This transition prepares our business to take advantage of investment opportunities we believe will become available after a substantial recapitalization of certain projects.”

The Company has sold 205.8209 ETH for proceeds CAD $293k and 214.7203 BTC for proceeds CAD $6,086,283.

The Company’s treasury presently holds no BTC and no ETH.

Read in full https://cypherpunkholdings.com/cypherpunk-holdings-corp-update-june2022/

[Poker Player]

I would say the company has made a fool of itself. They seem to be the typical retail investor doing the opposite of the right thing: buy high sell low.

To top it off, they are called Cypherpunk.

If you have to sell your Bitcoins right now to get cash, you have not been doing something right in managing your finances.

[jackg]

Anyone selling now is just guessing at what they expect to happen.

They bought a small position back in 2019 for cheap and then have continued to buy since then.

They still hold a stake in cryptocurrency companies (I presume) which might be paying out crypto on their profits but I'm not sure holding $8+m usdc is that smart of a decision they could've made.

[NeuroticFish]

I find it a quite peculiar move from a company calling itself "a sector leader for blockchain [...] focused investments".
I mean that a company focused on such investments should know about the market cycles and that there's a good chance that they simply sold at - or close to - the minimal price for 2022.
But maybe they know / expect something we don't. Or maybe something has change in their internal status and they change their object of activity?

However, they are cypherpunks as much as I'm a cat. That's for sure.

[NotATether]

From a strict investment point of view, they would be fine if the cryptocurrency holdings accounted for up to 20% of their total investments.

Then when the market loses half its quarterly value like now, they only lose 10% capital, which is the worst that can happen to BTC / ETH

It seems that there has never been a quarterly (3 months) correction of more than 50% in recent years.

[avikz]

It's a shame that the risk appetite of an institutional investor is so low. I am sure the shareholders have decided to sell off the crypto holding. Because any crypto enthusiast know this is not the right time to sell and it is the time to accumulate more. But shareholders are usually rigid in some matters which sometimes work against the comoany financials.

This event can be a possible reason why the market again came down to 19k level. The worst is not over yet.

[bbc.reporter]

I would say the company has made a fool of itself. They seem to be the typical retail investor doing the opposite of the right thing: buy high sell low.

To top it off, they are called Cypherpunk.

If you have to sell your Bitcoins right now to get cash, you have not been doing something right in managing your finances.

No, to top it off their stock ticker is called HODL hehehe. However, if their strategy is to sell today and buy what they sold back on a lower price, I reckon it mght be a good strategy it works. However, it is very hard to assume if there will be more dumps soon. It appears both retail and institutional investors have capitulated already after Luna, Celsius and 3 Arrows Capital liquidations.

[stompix]

To top it off, they are called Cypherpunk.

Let's add mere frosting to the cake: CSE: HODL 

a sector leader for blockchain, metaverse, privacy and cryptography focused investments

So they've managed to somehow be the leaders in some hype that actually never materialized, as the leaders in interplanetary colonization.

Current equity investments include Samourai Wallet, Wasabi Wallet, Chia  NGRAVE and GOAT.

I wonder if they bought Chia at over 1000 (now 40)

On the balance of probabilities, we see weaker price action opening the way to lower levels to come as reports of the number of chains imposing ‘temporary’ suspension on withdrawals increases. Until such a time as our thesis on market conditions change, our treasury will remain in cash.

This comes from the "leaders" of whatever!
Anyhow, this was expected, as it gains traction and more and more business starts popping around we're going to experience the same flaws, the same liquidations, and the same bankruptcy as in every traditional market, bitcoin is money, bitcoin is value, these can't increase forever at those rates just because it happened before for some rainbow charts tell you so.

[NeuroticFish]

This comes from the "leaders" of whatever!
Anyhow, this was expected, as it gains traction and more and more business starts popping around we're going to experience the same flaws, the same liquidations, and the same bankruptcy as in every traditional market, bitcoin is money, bitcoin is value, these can't increase forever at those rates just because it happened before for some rainbow charts tell you so.

That's correct. I fear the moment bigger players may take the same decision. I do hope though that those are smarter, not so much driven by hype and didn't expose themselves in all kinds of shitcoins.

[DapanasFruit]

When the bulls will be returning, I am sure this company will look at this sell decision with a lot of scratches on their heads. I am sure then that Cypherpunk is a big shame to their own name...and they entered the space of Bitcoin with both eyes blinded...maybe they entertain romanticized ideas not based on the realities on the ground. Anyway, what is happening right now is the same as what happened in the past...weak hands will be selling until there can be as saturation point...and there the market will be rebounding big time.

[hd49728]

Lessons I got from crypto market and my time in it.

A project needs to have more than 4 years old to be considered that it is strong enough to survive in bear market, black swan events.
A crypto investors must spend more than 4 years in this market to understand how it is and maybe be able to stay here for more years.
The same for a crypto company, we can not say anything about a company that joins crypto market in bull run and has yet been tested by a full cycle of market: 4 years.

So 4 years is a least period to verify a crypto investor, company, project.

It's sad to see a story of the Canadian company but I am not surprised.