Cypherpunk grabs 18% of Zcash mining power in big Winklevoss deal

Cypherpunk Technologies has taken a massive stake in the privacy sector by acquiring roughly 18% of the total Zcash mining power. The public company spent $33.33 million in an equity deal to buy 4,902 mining machines from Moria Mining, which is tied to Winklevoss Treasury Investments. This fleet generates about 4.2 GSol per second across three sites in the United States, making Cypherpunk the operator of the largest active Zcash mining fleet in the world.

This move shifts the company strategy from simply holding the token to actively producing it. Cypherpunk already holds over 323,000 ZEC, which represents about 2% of the circulating supply, and aims to own 5% overall. Company leaders noted that mining allows them to produce ZEC at costs lower than prevailing spot market prices, potentially funding future purchases and tech investments.

The massive expansion comes with a notable equity cost because Cypherpunk paid with stock rather than cash. The transaction involves pre funded warrants that could significantly increase the total share count, though most of those shares still require upcoming shareholder approval. Meanwhile, new leadership appointments and strong current mining economics suggest privacy coins are capturing fresh attention from institutional investors.