The Ethereum Foundation (EF) – a non-profit organization that supports the second-largest blockchain protocol – disclosed that its treasury equals around $1.6 billion. $1.3 billion of it is distributed in digital assets (primarily ETH), while approximately $300 million belong to non-crypto investments.
EF sold ETH to ATH
In its financial report, the Ethereum Foundation revealed that 99.1% of its total crypto holdings of $1.3 billion are held in ETH. This amount represented 0.297% of the entire supply of ETH at the end of March 2022, the entity added. EF has said it believes in the potential of Ethereum, and these holdings represent that long-term prospect.
Despite being a strong proponent of Ether, the organization sold a portion of its digital asset holdings when ETH was near its all-time high. The asset hit its record price in November 2021 when it topped nearly $4,900.
On another note, the organization informed that it has started to increase its non-crypto savings. The move could provide a greater safety margin for the EF’s core budget and allow it to “continue funding non-essential but high-leverage projects in the event of a market downturn”.
The report also outlined how the EF managed its spending throughout 2021. The entity spent around $48 million last year as $20 million was in the form of external spending, including grants, third party funding, bounties, sponsorships, and delegated domain allocations. The remaining $28 million was distributed to the EF community’s teams and projects.
The Ethereum Foundation is part of a larger community of entities and individuals that support the Ethereum ecosystem. All of these fund protocol development, grow the community, and are strong supporters of the blockchain protocol.
Previous Times When the EF Sold its ETH Holdings
It is worth noting that in 2017 the foundation sold 70,000 ETH. Interestingly, the decision was prompted by Vitalik Buterin – Co-Founder of Ethereum:
“I asked the Ethereum Foundation to sell 70,000 ETH as basically at the top, and it doubled our track now, so it was a good decision that had a lot of impact.”
In May 2021, Ether surged to a new ATH of around $4,000. Then the EF sold 35,000 ETH from its possessions.
The last selloff was in November last year, a day after the all-time high of nearly $4,900. At the time, the organization sent a massive batch of 20,000 ETH to the Kraken exchange in a transaction worth nearly $100 million.
