Cypherpunk Technologies, a digital asset treasury company traded on Nasdaq, has expanded its purchases of the privacy-focused cryptocurrency Zcash. In its latest announcement, the company stated that it purchased 56,418 ZEC at an average price of $514.02, bringing its total Zcash holdings to 290,062. This amount represents approximately 1.76% of the total circulating ZEC supply. Based on current prices, Cypherpunk's Zcash portfolio is worth approximately $152 million.
Cypherpunk bought more ZEC
This move by the company is noteworthy despite the general pullback in the crypto market in recent months. The average cost per token for Cypherpunk's Zcash position is $334.41. This makes the company one of the few digital asset treasury companies that has been able to record unrealized profits despite the market correction that has been ongoing since October. Zcash's price has surged over 1,200% since September, driven by a resurgence in interest in privacy-focused cryptocurrencies.
Cypherpunk has long positioned Zcash as a strategic asset, focusing not only on price movements but also on the future role of privacy technologies. Commenting on the matter, the company's investment director, Will McEvoy, stated that they are maintaining their goal of accumulating up to 5% of the Zcash network, emphasizing that the market is entering a period where it is "re-pricing the societal importance of privacy." According to McEvoy, privacy-based solutions could become more central in the coming years for both individual users and institutional actors.
Cypherpunk's latest acquisition follows its $18 million Zcash purchase announced in November. This indicates that the company is pursuing its acquisitions with a gradual and planned strategy, independent of short-term price fluctuations. Zcash is known for offering transaction privacy through advanced cryptographic methods such as zero-knowledge proofs, and this feature is seen as a strong value proposition by a certain investor base despite regulatory debates. On the other hand, the investor profile behind Cypherpunk is also closely watched in the market. The company is backed by the Winklevoss brothers, well-known figures in the crypto ecosystem. This support also strengthens the perception of Cypherpunk's long-term vision and financial strength. In terms of stock, the developments were received positively in the short term. Cypherpunk shares rose 11% to $1.31 after the acquisition news. However, a limited pullback of approximately 1.5% was observed in pre-market trading. While Zcash and similar privacy coins have recently come back into the spotlight, Cypherpunk's unaggressive but stable accumulation strategy sets a different example in the sector.
