$125 Million Revenue Estimated for Winklevoss-Backed Zcash Mining Bet
Cypherpunk Technologies' $33 million Zcash mining bet is on track to yield an estimated annual revenue of $125 million, according to the company's head of mining, Kevin Zhang.
The Nasdaq-listed company purchased roughly 5,000 Bitmain Z15 Pro machines from Moria Mining, a Winklevoss Capital affiliate, on August 18. At the time, the fleet represented about 18% of the Zcash network and generated an estimated $48 million in annual revenue.
ZEC's price has since more than tripled to around $1,600, increasing the estimated gross revenue rate by a factor of nearly three. The current economics put gross revenue at approximately $1,000 per megawatt-hour of electricity consumed, significantly exceeding estimates for leading Bitcoin miners and artificial-intelligence hosting agreements.
Cypherpunk's share of Zcash computing power has fallen from 18% to about 15% as the network grew by roughly 21%. Zhang notes that more than 30 GSol/s of mining equipment is already online, despite the network averaging about 27.5 GSol/s.