Nasdaq-listed crypto treasury Lion Group Holding sold part of its HYPE tokens just two months after acquiring them. What do we know?
Lion Group Holding is already selling HYPE tokens
It’s no secret that many crypto treasuries are only that in name, and we expect to see more and more failures after a period of popularity for the concept. The case of Lion Group Holding could be one such failure, as the Nasdaq-listed company began selling HYPE tokens this week, less than two months after a promising announcement.
On June 26, Lion Group Holding officially announced the release of $600 million in “convertible bond credit facilities” in order to “build a new generation of Tier 1 treasuries,” notably through HYPE, SOL, and SUI tokens.
Just one month ago, on July 23, a press release announced the acquisition of the following assets, with a market value of $9.6 million:
- 128,929 HYPE;
- 6,629 SOL;
- 1,015,680 SUI.
Where the market might have expected more investment, it appears that the company has instead begun to sell some of its assets. And for good reason: yesterday, content creator CryptoPoulpe shared a screenshot from a Telegram channel identifying a transaction linked to Lion Group Holding.
What makes it possible to identify the address are past transactions that totaled the number of HYPE tokens associated with the company. On Monday, Lion Group Holding transferred 12,000 HYPE tokens to another address, which then sent the tokens to the Gate cryptocurrency exchange:
At this time, the company has not yet filed with the Securities and Exchange Commission (SEC) to confirm the sale, and its X profile is locked to unapproved followers.
However, it is worth noting that there may be a delay between a given financial transaction and its reporting to the SEC, as the transactions involving the 128,929 HYPE tokens took place on June 26, while the announcement was not made until a month later.
In any case, it must be acknowledged that Lion Group Holding’s LGHL stock is going through a difficult period on the stock market. Since the beginning of the year, the stock has seen its price fall by 83% and the company’s market capitalization has barely reached $1.33 million:
Although the amounts involved here are not necessarily significant, they are still instructive in terms of what might happen in the future. Indeed, while massive purchases of various cryptocurrencies by publicly traded companies may have supported prices, the opposite effect could just as easily occur when the first difficulties arise.
