The non-profit that holds funds raised in Tezos’ initial coin offering (ICO) of $400 million sold up to 8,000 bitcoins (BTC) in 2019.
The portion of the portfolio of Tezos Foundation made up of bitcoin fell from 61 percent in July to 47 percent as of the end of January, the non-profit published in its biannual report. The value had been reinvested in XTZ tokens and other asset classes.
According to the report, the Swiss-based Tezos Foundation held roughly $397.7 million worth of bitcoin on July 31, 2019, while it held 31,800 bitcoin, worth approximately $298.5 million based on a $9,400 spot prize, as of Jan. 31. That means the foundation sold as many as 8,000 bitcoins which would still be worth as much as $53 million today, even with the recent downturn in prices.
The total foundation’s portfolio value fell from $652 million as of July 31 to $625 million as of Jan. 31. It is managed by an asset-management strategy established and reviewed on a regular basis by the Tezos Foundation Council – the group that leads the organization, the report says.
Value has been reinvested in other asset classes, including bonds, equities and currencies of fiat.
Foundation Increases Token Exposure to Tezos
The foundation also increased its token exposure to tezos (XTZ), which increased the share from 15 to 23 percent. According to CoinGecko, with the XTZ price rising by nearly 40 percent in the six months between the reports, the value of holdings increased by about $48.2 million.
Roman Schnider, the Tezos Foundation’s CFO, said that while Bitcoin was considered a “key store of value,” its asset strategy policy was to focus and pay for its long-term goals “without being distracted by short-term market moves.”
Schnider added that investments in a stability fund – a diversified range of exchange-traded funds (ETFs) and bonds, as well as fiat currencies served as risk management tools that ensured “operational effectiveness” against crypto-volatility.
The Tezos Foundation said in the report that it had no plans to liquidate any of the XTZ that was allocated from the genesis block or generated from its own baking activities, a form of staking used to produce blocks and secure the tezos protocol.