Blockchain, digital currencies and privacy
Cypherpunk Holdings: in brief
- Canadian listed company (CSE: HODL, OTC: KHRIF) with a portfolio of assets in the digital and privacy market
- Large holder of Bitcoin as a cash reserve
- Investments in companies at the forefront of currencies and digital infrastructures
- Other acquisitions include a large pool of increasingly scarce IP addresses
- Experienced management team with an established track record in the blockchain and cryptocurrency markets
Digital currencies and privacy – two major trends that will define the financial landscape going forward. And here is Cypherpunk Holdings (CSE: HODL, OTC: KHRIF), a listed company that combines a portfolio of the best of both worlds.
Cypherpunk Holdings is not a fund, it is a company with a diverse portfolio of investments in companies and cryptocurrencies, as well as other digital assets. As such, it is less of a risk than taking a single position in a single room. It is also led by an expert team in the sector.
Cypherpunk remains one of the largest holders of publicly traded Bitcoin. As of April 14, he holds a total of 360 BTC. As part of its capital allocation and cash management strategy, Cypherpunk will maintain sufficient liquidity to meet daily needs, while the majority of unallocated reserves will remain in Bitcoin.
Cypherpunk also owns a number of stakes in companies active in the blockchain space. Businesses need to be able to improve overall internet privacy or allow for further decentralization of blockchain networks. Ideally, they should represent early stage opportunities and have proven leadership.
For example, at the time of writing, the company owns 4.5% of Wasabi Wallet, a market-leading desktop privacy wallet for Bitcoin. He also owns 1.4% of Samourai Wallet, which is considered to be one of the most secure and private mobile cryptocurrency wallets.
Outside of the portfolio space, Cypherpunk Holdings also owns stakes in Chia (a developer of programming language for blockchain), Hydro66 (a Swedish data center that provides cloud computing and crypto mining services) and, more interestingly, NGRAVE, which has Zero, aka Coldest Wallet, a fully offline hardware wallet with high level security certification.
Cypherpunk is exposed to companies like this through various means. Sometimes it is a lead investor, sometimes it uses convertible loan notes or warrants. Not all of these companies are listed either.
As an example of the type of business that is catching Cypherpunk’s attention, Chia, one of its holdings, has just launched a green cryptocurrency. It is based on the proof of space and time, rather than the proof-of-work concept behind Bitcoin. Users should sow unused space on their hard drives. Instead of Bitcoin miners, we now have Chia farmers. This means that ordinary home computer owners can participate in the action, rather than those who control massive server farms.
The future of cryptocurrencies will of course be supported by the development of very low-to-zero impact energy solutions like this one. It must be.
But Cypherpunk isn’t just about cryptocurrency. One of the earliest justifications for cryptocurrency in the first place was privacy, and privacy is going to be something of a premium in the decades to come.
Part of Cypherpunk’s strategy is to exploit this future demand for confidentiality, the urge to leave the network. It becomes more difficult.
In March, Cypherpunk said it was engaging with Heficed to acquire more than 16,000 IPv4 addresses. These will become part of a long-term asset for the company and will enable Cypherpunk to record operating profit. Cypherpunk has now secured a rental agreement for these addresses that will bring back nearly 15% on their investment each year.
The prices of IP addresses have steadily increased over the past year (over 35%). A single IP address currently costs between $ 20 and $ 25 at the moment, but demand is starting to exceed supply due to demand from e-commerce platforms buying thousands of them.
Cypherpunk believes that the demand for these addresses will only increase as we migrate to increased use of the Internet of Things. When the Internet was first launched, there was a widely held assumption that only 4 billion IP addresses would be needed. A small number of tech companies and ISPs have now largely cornered the market for these digital assets. Although a new form of IP, IP6, has been created, its adoption has been slow.
This is a prime example of the type of digital market that is not a cryptocurrency that Cypherpunk is able to get involved in.
Who runs Cypherpunk Holdings?
The CEO of Cypherpunk is Antanas “Tony” Guoga, a former member of the European Parliament who also started the Blockchain Center in Lithuania. He sat in the European Parliament from 2014 to 2019 but is also a big supporter of Lithuania’s development as a high-tech hub, especially in the blockchain field. He has worked with the Lithuanian government to leverage the country’s skilled workforce in the development of technology projects, pursuing a vision that encompasses the transparency benefits that blockchain can bring to society.
The team’s investment manager is Moe Adham, a Bitcoin miner and nanotechnology graduate from the Swiss Federal Institute of Technology. He is an international speaker on the topic of blockchain technology.
Cypherpunk’s chief economist is Jon Matonis, a founding director of the Bitcoin Foundation who has also held influential positions at companies like Visa, Verisign and Sumitomo Bank. He is also an independent director on the boards of directors of companies in areas such as mobile payments and gaming.
Further support for investor relations comes from Veronika Oswald, who is a partner of financial technology and venture capital firms in the UK and who has a considerable and valuable network of contacts in the financial world.
Why we love Cypherpunk
At the end of the day, we love Cypherpunk because the company represents a slice of the future. It is not a pure cryptocurrency game, nor is it focused on blockchain infrastructure. It’s more diverse than that. Cypherpunk provides exposure to the underlying companies that lie near the center of the coming financial revolution, with a focus on innovation that helps build a digital world with greater integrity and privacy.