The Terramatris crypto hedge fund endured a punishing March, with brief recoveries eclipsed by a dramatic late-month collapse. As of March 31, 2025, the fund’s value stood at $5,142, reflecting a steep -34.18% drop month-over-month. Year-to-date, our fund is down -9.45%, underscoring the relentless challenges we’ve faced.
March 2025 has been a grueling period for Terramatris, with our performance trailing major cryptocurrencies.
- Bitcoin (BTC) ended the month down -2.98%, a modest decline compared to our -34.18% plunge.
- Ethereum (ETH), a core holding, fell -17.39%, magnifying our losses due to our heavy reliance on ETH put options that unraveled as the asset staged a late recovery.
- Solana (SOL) dropped -8.33%, outperforming both us and ETH but still mirroring the broader market’s struggles.
Our outsized losses spotlight the crippling impact of our options strategy—particularly the ETH puts, which buckled as Ethereum clawed back from mid-month lows.
Earlier this month, we pivoted our deep in-the-money ETH put options to covered calls on long perpetual futures, aiming to mitigate risk and enhance capital efficiency. This shift cushioned some damage as ETH stabilized, but the earlier put-heavy approach left us reeling. Our current positions in long perpetual futures (settled in USDC) are:
- 0.02 BTC (break-even: $111,030)
- 2.1 ETH (break-even: $2,723)
- 5 SOL (break-even: $164.40)
Converting these positions to spot crypto would require $8,740.90 in cash—an impractical sum given our constraints. By using long perpetual futures, we need only a fraction of that, though funding fees remain a burden.
With $2,570 still to recover, we’re selling weekly calls to generate cash—crucial since we’re steering clear of spot crypto purchases or margin in this cash-strapped recovery phase. Cash is KING! We plan to begin converting long perpetuals into spot crypto by late April, allocating half our cash reserves, ideally after lowering our break-even prices. We project $300–$400 in cash from call options in April to support this effort.
No new capital has been injected, and liquidity remains our lifeline.
TerraM Token Update
The TerraM token price rose from $2.26 to $2.60, a rare bright spot amid the wreckage. This uptick stems from two buybacks executed early in March, bolstered by a small, loyal holder base focused on long-term growth. We’re dedicated to enhancing TerraM liquidity, but with the fund at $5,142, significant steps like another buyback are deferred until we reach $8,000.
Swap on Raydium, ByBit or OKX.com (Solana supported wallet required)
March’s fleeting gains were obliterated by a brutal finish, exposing our vulnerability to ETH’s volatility and the market’s unpredictability. Our priorities now are:
- Risk Mitigation & Capital Preservation – Shielding against further turbulence.
- Strategic Adjustments – Fine-tuning options strategies and hedging to recover.
For April, with no short put options open—only spot and perpetual futures—we aim to reduce our break-even prices on long futures, setting the stage for a gradual rebuild.
Institutional interest in crypto endures, but caution prevails. We believe ETH could climb to $2,500 in the long term, though near-term dips pose risks. March 2025 has been a stark lesson for Terramatris—recovery will demand precision and resilience.
This update is for informational purposes only and should not be considered financial advice. Please conduct your own research before making investment decisions.