• The Lisk Foundation will be selling 1,000 bitcoin (BTC) for ethereum (ETH) over the next 10 weeks.
• The ETH purchased will be deposited into a 2-of-3 multisig account, with each board member of the Lisk Foundation holding one key.
• The move is to bolster the foundation’s long-term treasury and minimize risks associated with third parties.
Lisk Foundation to Sell Bitcoin for Ethereum
The Lisk Foundation, led by co-founder and CEO Max Kordek, recently announced that it would convert 1,000 bitcoin (BTC) to ethereum (ETH) over the next 10 weeks. This decision was made in order to minimize risks associated with third parties and bolster the foundation’s long-term treasury.
Details of Transaction
The 1000 BTC are being sold in chunks of 100 BTC per week to reduce risks with associated third parties. The ETH purchased will be deposited into a 2-of-3 multisig account, with each board member of the Lisk Foundation holding one key. Furthermore, 500 BTC will be retained to cover expenses in 2024 and 2025.
Benefits of Investment
Max Kordek clarified that the intention is to stake the acquired ETH due its position as largest smart contracting platform in the world which aligns with their treasury goals of supporting decentralized applications (dapps). Additionally, Ethereum’s staking mechanism may provide a sustainable, long-term return on investment (ROI). Kordek emphasized the benefits of investing in an appreciating, deflationary asset that generates yields.
Impact on Bitcoin Prices
Lisk raised 14,000 BTC during its Initial Coin Offering (ICO) frenzy of 2016 and 2017 and currently has a market cap of $106m according CoinMarketCap rankings at 195th place. Despite this ,Kordek outlined three main reasons behind the decision to sell BTC for ETH which include; Ethereum’s position as leading smart contracting platform , acceptable risk from a treasury perspective and potential sustainable return on investment .
The move by Lisk Foundation is set unify their goal towards supporting decentralized applications while providing an avenue for them maximize returns from investments .