Author: The Heart of Computing Power

On August 18, 2026, something very interesting happened on the Nasdaq.

The publicly traded company Cypherpunk Technologies (CYPH) suddenly announced the establishment of a mining department, securing approximately 18% of the entire Zcash (Z coin) network's computing power all at once, directly becoming the largest Zcash miner in the world.

The big backer behind this is a well-known player in the crypto circle—the promoter of the Bitcoin ETF—

Winklevoss Capital, owned by the Winklevoss twins, who invested $33.33 million to make this gamble happen.

The motivation behind this is actually a land-grabbing game.

1. A Calculation of $33.33 Million

Investors focus on the return on investment.

Let’s first take a look at how this $33.33 million deal was structured.

The Winklevoss twins acquired approximately 43.29 million shares of common stock through a mechanism called “pre-financing warrants.”

The exercise price is astonishingly low, at just $0.001 per share, while the stock price at the time was about $0.77.

However, the agreement has two safety measures: the Winklevoss's shareholding ratio is capped at 19.99%; this round can only issue approximately 5.37 million shares, and the remaining shares need shareholder approval to be issued.

This means that the moguls are only providing a strategic backing without directly seizing control of the company.

After the deal, Cypherpunk obtained Bitmain's Z15 Pro miners, all based in the United States, which not only avoids foreign geopolitical risks but also facilitates compliance checks in the U.S.

The entire Zcash network produces about 1,440 coins per day, amounting to approximately 43,800 coins per month.

Cypherpunk currently holds 18% of the computing power, which is 4.2 GSol/s.

This means that for every 100 Zcoins mined globally, 18 end up in their hands, expecting to receive about 7,800 coins monthly.

At the current market price, this mining operation can tap into a market worth over $250 million annually.

The company’s CIO Will McEvoy confirmed that this business is already cash flow positive.

The newly appointed mining head Kevin Zhang also stated that based on the current coin price, the earnings from mining Zcash have surpassed those from the currently popular AI computing power hosting and Bitcoin mining.

2. The Closed Loop Game of Pharmaceutical Shells

Cypherpunk's own origins are quite mysterious.

It was previously known as Leap Therapeutics, a biopharmaceutical company focused on cancer drugs.

Transitioning from pharmaceuticals to mining privacy coins is a significant leap, but their logic for entering the privacy coin space forms a complete closed loop.

The company’s official website outlines three main sectors: coin accumulation, mining, and privacy technology investment (including ZODL).

The first step is “mining,” which is the mining operation mentioned earlier;

the second step is “management,” as they hold the Zcash wallet ZODL, which currently has the largest user base, securing the flow entry.

The third step is “accumulation,” following MicroStrategy's strategy of accumulating Bitcoin. Cypherpunk has currently hoarded 323,394 Zcash, accounting for 1.92% of the total circulating supply, with the ultimate goal of consuming 5% of the total supply.

But why specifically choose Zcash?

Because it is a privacy coin with “selective disclosure.”

Unlike Bitcoin, which anyone can audit, Zcash employs zero-knowledge proof technology, allowing users to choose between putting their funds in a transparent address or in a concealed address.

Cypherpunk's Chief Investment Officer Will McEvoy (who is also a partner at Winklevoss Capital and is assigned to Cypherpunk as CIO) believes this mechanism strikes the best balance between compliance and privacy.

The cash flow generated from mining can conveniently be used to continue purchasing coins, creating a snowball effect of money rolling into more money.

3. Balancing on 18% Computing Power

However, while making money is good, there are plenty of real-world challenges.

To state the facts, Cypherpunk is currently walking on two tightropes.

The first is “computing power concentration.”

In the crypto world, a single entity controlling nearly one-fifth (18%) of a network’s computing power is a very sensitive issue.

Theoretically, if computing power exceeds 50%, a “51% attack” can be launched to tamper with the ledger.

Although Cypherpunk, as a publicly traded company listed on Nasdaq, is nearly impossible to maliciously attack the network, this indeed undermines the "decentralization" narrative that cryptocurrencies often advocate, raising concerns.

The second is “regulatory compliance.”

Many places around the world are keeping a close eye on privacy coins; several mainstream exchanges have delisted or restricted Zcash in certain regions to avoid complications.

As a publicly traded company strictly regulated by the U.S. Securities and Exchange Commission, conducting such large-scale privacy coin mining raises uncertainty about how they will pass compliance checks in the future.

Additionally, the company's stock price is now significantly tied to Zcash's price; buying into their stock is effectively betting on the coin's price and the management's operational capability.

MicroStrategy relied on accumulating Bitcoin to establish a new paradigm in the U.S. stock market.

Now Cypherpunk wants to play a bigger game.

Not only do they want to hoard, but they also want to produce, and even manage user wallets.

The $33.33 million invested by the Winklevoss twins is essentially a bet on the future potential of "privacy assetization."

As for whether this company can successfully accumulate 5% of Zcash holdings or if a regulatory hammer will fall,

that matter is still developing, let the bullets fly for a while.

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