Tezos Foundation Significantly Liquidates Its Bitcoin Asset Portfolio Section

The Tezos Foundation, one of the most reputable crypto firms in the world, has reduced the percentage of its Bitcoin portfolio. According to the firm’s biannual report that was published recently, it disclosed that it had shrunk the share of its total asset portfolio that is made up of Bitcoin from 61 percent in July 2019 to about 47 percent as of the end of January 2020. 

Cutting Down on Bitcoin Dependency 

In July 2019, the Swiss firm held about $398 million worth of Bitcoin, with the asset trading at $10,000 per token. This means that the company held about 39,700 BTC. However, the Foundation had 31,800 BTC in January 2020. With the asset trading at a spot price of $9,400, the firm had roughly $299 million. The math shows that the firm sold about 8,000 BTC tokens in its portfolio adjustment. 

As the non-profit organization explained, the liquidated assets were used to make strategic investments into XTZ tokens and other asset classes. The firm’s asset portfolio is managed by the Tezos Foundation Council. The total value of the portfolio was also reported to have fallen from $652 million to $625 million in the period under consideration. The firm had diversified some of this value into other asset classes, including equities, bonds, and fiat assets.

The Foundation’s Tezos (XTZ) exposure was also increased from 15 to 23 percent. Given that the asset’s price has increased by 40 percent in the past six months, the firm’s XTZ exposure would have increased by $48.2 million in value. 

As for a reason for this move, Roman Schnider, the firm’s Chief Financial Officer, explained in an interview with industry news source CoinDesk that they’re currently looking into providing for some of their long-term objectives. 

He explained that while they see Bitcoin as a key store of value, they’re working on playing the long game and not being distracted by “short-term market moves.”

Focus on Future Sustainability 

The Foundation’s commitment to long-term stability and viability goes beyond just making bigger plays on XTZ and its proportion in its asset portfolio. As the report also pointed out, they also provided $38 million to developers in their ecosystem throughout the period in consideration. 

The report provided insights on some of the grant’s divisions – research and development, ecosystem projects, and community support. Everyone will need to be vetted to be eligible, with due diligence and proposal evaluations done to select the beneficiaries. 

Seventy-eight applications were eventually selected out of over 200 submissions, all of whom will be given funds after several milestones have been created. A majority of the grants, however, have been given towards projects that aim to improve Tezos’ smart contract languages and to improve the network’s core software components. 

Other aspects that got grants include the development of ecosystem equipment and apps, as well as Tezsure, an insurance platform that runs on the Tezos blockchain. The Foundation also provided $13 million to its community to help optimize their work of spreading and improving its exposure.