Overview: Sentiment and Stocks
In a surprise development, blockchain investment company Cypherpunk Holdings (HODL) snuck into the August Top 40 stock report. The stock has been floundering, and we noted some insider selling in the name in our March 30th report. Recently, however, the CEO has been buying. That, along with a price-to-cash ratio of less than one, has helped to push the stock up our rankings into the sunny category.
The stock has rallied 27.6% over the past month on the back of a rebound in bitcoin and other cryptocurrencies. As of its August 17th close (18.5 cents), the stock remains just below its 200-day moving average of 21 cents. The recent strength in cryptocurrencies has helped to boost the value of Cypherpunk's crypto holdings.
According to a June 29th press release, the company's holdings included 386 bitcoin and 511.9 ether (the token for Ethereum). INK estimates those holdings to be worth about $24 million based on indicated prices and the Canadian dollar exchange rate as of the evening of August 17th. Cypherpunk also reported holding $3.3 million in cash.
While cryptocurrencies make up the most significant portion of the firm's assets, Cypherpunk is also on the lookout for opportunities in the area of privacy technology. In its quarterly financial statements for the period ending March 31st, it reported holding four equity investments with a combined fair value of about $1.7 million. There has not been any news since our March report about any new equity investment targets, but, thanks to recent cryptocurrency strength, Cypherpunk has some dry powder to deploy if the opportunity arises.
From May 27th to August 16th, Cypherpunk Holdings (HODL) Director and CEO Antanas Guoga bought a total of 6,061,000 common shares on a direct ownership basis at an average price of $0.17. Mr. Guoga also sold 1,000,000 common shares at $0.20 on August 12th. Mr. Guoga is the largest insider equity holder at the company with 18.58% of shares outstanding.
Cypherpunk Holdings has above median ownership (direct & indirect holdings) by Officers and Directors compared to other micro-cap stocks in the Financials sector according to SEDI filings as of August 17th, 2021.
Cypherpunk Holdings currently holds a sunny INK Edge outlook on the equally weighted V.I.P. criteria of valuations, insider commitment and price momentum which places it in the top 10% of all stocks ranked. INK outlook categories are designed to identify groups of stocks that have the potential to out or underperform the market. However, any individual stock could surprise on the up or downside. As such, outlook categories are not meant to be stock-specific recommendations. For background on our INK Edge outlook, please visit our FAQ #5 at inkresearch.com.
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