Cypherpunk Mining Acquires 18% Stake in Zcash Network

Cypherpunk Mining has launched a significant Zcash mining fleet, acquiring approximately 18% of the Zcash network's total computing power. The company purchased 43.29 million common shares through a pre-funded warrant covering Winklevoss Treasury Investments, with an exercise price of $0.001 per share and a stated share price of $0.77 per share.

The mining fleet consists of Bitmain Z15 Pro machines, which produce roughly 7,800 ZEC (Zcash) per month. This acquisition is expected to accelerate Cypherpunk's path to holding 5% of the Zcash supply, a goal it has linked to monthly mining rewards of about 43,800 ZEC.

Cypherpunk's head of mining, Kevin Zhang, stated that approximately 1,440 ZEC is awarded to miners each day. He argued that Zcash mining out-earns AI colocation and Bitcoin mining at today's ZEC prices. The company sees this move as adding a second route to increase its ZEC holdings beyond open-market purchases.

The deal structure also allows Winklevoss Treasury Investments to purchase 43.29 million Cypherpunk shares for $0.001 each, with a 19.99% beneficial ownership ceiling. Cypherpunk must seek shareholder approval at its next annual meeting before issuing more than 5,377,442 shares through the warrant.