Cypherpunk Technologies acquires world's largest Zcash mining fleet for $33 million from Winklevoss Capital

Aug 18, 2026

Cypherpunk Technologies has launched the world's largest Zcash mining operation after acquiring a 4.2 GSol/s fleet from Winklevoss Capital entities for $33.33 million. Funded via a pre-funded warrant for 43.29 million shares, the deal gives Cypherpunk control of 18% of the Zcash network's hashrate. This shift from pure token holding to active production supports Cypherpunk's goal of accumulating 5% of the circulating ZEC supply, though it introduces potential shareholder dilution of up to 28.7%.

Cypherpunk acquires Zcash fleet

▪Cypherpunk Technologies launched its mining subsidiary, Cypherpunk Mining LLC, on August 18, 2026, following the acquisition of mining assets from Winklevoss Capital entities.
▪Cypherpunk Technologies appointed industry veteran Kevin Zhang, who previously developed North American mining deployments for Foundry, as its Head of Mining on August 18, 2026.
▪Cypherpunk Technologies acquired a Zcash mining fleet consisting of 4,902 Bitmain Z15 Pro machines from Moria Mining LLC on August 17, 2026.

Mining fleet network dominance

▪The acquired Zcash mining fleet produces approximately 4.2 GSol/s of Equihash processing capacity, representing about 18% of the total Zcash network's computing power.
▪Cypherpunk Technologies described its newly acquired mining operation as the largest active Zcash mining fleet in the world.
▪The 18% network hashrate share positions Cypherpunk Technologies to produce an estimated 7,800 ZEC per month out of the 43,800 ZEC distributed to network miners.

Equity-based transaction structure

▪Cypherpunk Technologies funded the $33.33 million acquisition by issuing a pre-funded warrant to Winklevoss Treasury Investments LLC rather than paying cash.
▪The transaction valued Cypherpunk Technologies common stock at an effective price of $0.77 per share.
▪The pre-funded warrant issued to Winklevoss Treasury Investments LLC covers 43,290,042 common shares of Cypherpunk Technologies with an exercise price of $0.001 per share.

Shareholder dilution from warrants

▪The asset purchase agreement limits Winklevoss Treasury Investments LLC to a beneficial ownership ceiling of 19.99% of Cypherpunk Technologies.
▪Cypherpunk Technologies must seek shareholder approval at its next annual meeting to issue more than 5,377,442 shares under the pre-funded warrant.
▪Full issuance of the 43.29 million warrant shares would expand Cypherpunk Technologies' share count from 107.8 million to 151.1 million, representing approximately 28.7% of the enlarged total.

Zcash treasury accumulation strategy

▪Cypherpunk Technologies previously invested $5 million in Zcash Open Development Labs to support the development of the Zcash protocol and the Zodl wallet.
▪Cypherpunk Technologies holds 323,394.38 ZEC, representing approximately 1.92% of the circulating supply, with a long-term target of accumulating 5% of the total Zcash supply.
▪Cypherpunk Technologies transitioned to its Zcash treasury strategy after the former biotechnology company Leap Therapeutics changed its name and business model in 2025.

Mining profitability economics

▪Cypherpunk Technologies estimates that one megawatt of current-generation Zcash mining machines produces approximately $450 in revenue per megawatt-hour under August 2026 market conditions.
▪Cypherpunk Technologies Chief Investment Officer Will McEvoy stated on August 18, 2026, that the newly launched mining operation was already generating positive cash flow without carrying debt.
▪Cypherpunk Technologies estimates the equipment cost for one megawatt of Zcash mining capacity at $2.4 million, compared to $10 million to $12 million for artificial intelligence infrastructure.