Cypherpunk Technologies Inc. (NASDAQ: CYPH) completed a $33.33 million equity-based transaction to expand its Zcash mining operations, the company announced on Tuesday.
The transaction involved the issuance of a pre-funded warrant to Winklevoss Treasury Investments, LLC, granting the right to purchase 43,290,042 shares of Cypherpunk common stock at an exercise price of $0.001 per share. This equates to an effective stock purchase price of $0.77 per share. The funds will finance the acquisition of Z15 Pro mining machines, which have been deployed across U.S.-based facilities and are now operational.
The expanded fleet delivers approximately 4.2 GSol/s of Equihash hashrate, representing roughly 18% of the total Zcash network. Cypherpunk now holds 323,394.38 ZEC, equivalent to 1.92% of the circulating supply, with a stated target of accumulating 5% of the supply. The company currently receives approximately 43,800 ZEC monthly from mining rewards.
Cypherpunk describes itself as a privacy technology company focused on Zcash accumulation, investment in privacy-related technologies, and the development of tools such as the ZODL wallet. Kevin Zhang, head of mining and a former Foundry executive with over a decade of experience in Bitcoin and Zcash mining, oversees the initiative. The company also maintains a subsidiary, Leap Therapeutics, which develops cancer therapies including sirexatamab and FL-501.
The transaction follows Cypherpunk's strategy of using equity financing to scale its mining infrastructure while maintaining a focus on privacy-preserving digital assets.
