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Investment Update

- 4 mins read

Supporting VPNs and proxy services enhances Internet privacy

TORONTO, ONTARIO, Canada, March 3, 2021 – Cypherpunk Holdings Inc. (“Cypherpunk” or
the “Company”
) (CSE: HODL) a sector leader for privacy-technology investments is pleased to
announce that it has formally engaged Heficed (part of Digital Energy Technologies Ltd) to
procure at least 16,384 of IPv4 addresses. The acquired IP addresses will become a long-term
asset of the Company and will be leased out via the market-leading IPXO Ltd. platform, allowing
the Company to book operating income.

Heficed is a service provider owned by Digital Energy Technologies Ltd, based and operating in
the UK and Lithuania since 2009. Heficed clients range from large enterprises to start-ups. The
CEO of Heficed, Vincentas Grinius says: “The prices of IP addresses have drastically increased
in the last year, they are up by 35%. A single IP address costs between $20-$25. Due to the
demand and limit on supply we think this trend will continue and prices will be rising. One of the
biggest buyers is the largest e-commerce platform in the world. They have purchased 20 million
IP addresses in 2019 and another 8 million in 2020.” Heficed has been engaged on 2nd of March
2021 for an initial period of no less than 24 months.

Cypherpunk Holdings has been closely monitoring this space as the Internet of Things (IoT) is a
growing sector and IP addresses are widely used in privacy technologies such as Virtual Private
Networks (VPNs) and various cyber security applications.

The Company is further looking to lease the acquired addresses via IPXO platform. The Internet
Protocol Exchange Organisation, or IPXO, is a unique IP lease & monetization platform and
marketplace that helps to monetize unused IP resources and alleviate the IPv4 shortage problem.

Tony Guoga, the CEO of the Company, added: “When the internet was first created it was set to
just over 4 billion IPv4 addresses. Today, the world has run out of them and they have been
allocated to a very small number of large technology companies or internet service providers. A
new version of IP addresses called IPv6 has been created but the adoption rate has been
extremely slow. Just like Bitcoin, the supply is limited and this is why we think this a very
compelling investment, which we anticipate will yield a healthy return.”

IPv4 uses a 32-bit address, allowing for 4.3 billion unique addresses. IPv6 uses a 128-bit address,
which provides an immensely higher number of unique address combinations. For global
organizations, transitioning from majority IPv4 to majority IPv6 is a solution. However, this will not
be possible for everyone because less than 30% of all internet-connected networks promote IPv6
connectivity, organizations transitioning to IPv6 will have to run IPv4 and IPv6 simultaneously
which is both slow and expensive.

About Cypherpunk Holdings Inc.


Cypherpunk is a company set-up to invest in companies, technologies and protocols, which
enhance or protect privacy. Its strategy is to make targeted investments in businesses and assets
with strong privacy, often within the blockchain ecosystem, including select cryptocurrencies.
Current equity investments include Samourai Wallet, Wasabi Wallet, Chia, NGRAVE, and Hydro
66.

Cautionary Note Regarding Forward-Looking Information

Cypherpunk Holdings Cautionary Note Regarding Forward-Looking Information at the following link.

Cautionary Note Regarding Forward-Looking Information

Investor Relations Contacts:
Veronika Oswald
Investor Relations, Cypherpunk Holdings Inc.
veronika@cypherpunkholdings.com
Office: 416.599.8547