Cypherpunk Technologies has expanded its Zcash treasury with a new purchase worth more than $29 million. The Nasdaq-listed company, backed by Tyler Winklevoss, continues to follow its stated plan of building a 5% position in the Zcash supply. The latest acquisition pushes the company further toward that goal. It also reinforces its strategy of maintaining Zcash as a core treasury asset.
The firm confirmed the acquisition of 56,418 ZEC for roughly $29 million. The average purchase price was $514 per coin. Cypherpunk now holds 290,062 ZEC in its treasury. The holdings represent about 1.8% of Zcash’s circulating supply.
Cypherpunk Pushes Ahead With Zcash Strategy
The company first revealed its Zcash-focused treasury approach in November. This came after a rebrand from Leap Therapeutics. At the same time, Cypherpunk announced a $58.9 million investment from Winklevoss Capital. The firm also disclosed an initial ZEC purchase of around 204,000 coins.
Zcash has a capped maximum supply of 21 million coins. Roughly 16.5 million ZEC are currently in circulation. Cypherpunk has now accumulated more than one-third of its 5% target.
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Chief Investment Officer Will McEvoy said the company will continue with its accumulation strategy. He noted that the market is shifting its view on the importance of privacy. He also reiterated that the company remains focused on building its Zcash position.
Zcash Pullback Shapes Cypherpunk’s Next Moves
The latest purchase comes during a period of weaker ZEC price action. ZEC traded near $650 when Cypherpunk started building its treasury in November. At that time, the coin had reached a multi-year high. The price has since cooled. As of Tuesday, ZEC traded around $535, marking a decline of about 12% from earlier levels.
Cypherpunk’s stock has also faced pressure. When the company launched its new strategy, its shares traded just under $3. They have since fallen to around $1.20. This marks a drop of roughly 60% since the company’s debut on Nasdaq.
Despite the decline, Cypherpunk continues to emphasize Zcash as a central part of its treasury model. Winklevoss has described ZEC as a “privacy hedge” to Bitcoin. He has also pointed out the importance of privacy-focused cryptocurrencies in periods of rising oversight.
Cypherpunk stated that it will continue expanding its ZEC position. The company is also exploring investments tied to privacy-preserving technologies. It said privacy remains an important component of its long-term strategy. It also noted that ZEC will remain a core asset as it builds its treasury over time.
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