{"id":555955,"date":"2026-08-18T23:30:53","date_gmt":"2026-08-18T22:30:53","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=555955"},"modified":"2026-08-18T17:41:23","modified_gmt":"2026-08-18T16:41:23","slug":"this-public-company-now-controls-18-of-zcash-mining-power-after-33-million-winklevoss-linked-deal","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/this-public-company-now-controls-18-of-zcash-mining-power-after-33-million-winklevoss-linked-deal\/","title":{"rendered":"This public company now controls 18% of Zcash mining power after $33 million Winklevoss-linked deal"},"content":{"rendered":"<p>Cypherpunk Technologies acquired roughly 18% of <a href=\"https:\/\/cryptoslate.com\/coins\/zcash\/\">Zcash\u2019s<\/a> mining power in a $33.33 million equity deal that could dilute shareholders.<\/p>\n<p>On Aug. 18, the public company <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1509745\/000110465926098120\/tm2623453d1_ex99-1.htm\">revealed<\/a> that it bought 4,902 mining machines from Moria Mining, an affiliate of Winklevoss Treasury Investments (WTI). The fleet generates about 4.2 GSol\/s across three US sites, making Cypherpunk the operator of the world\u2019s largest active Zcash mining fleet.<\/p>\n<p>The acquisition also turns <a href=\"https:\/\/cryptoslate.com\/cypherpunk-secures-a-46m-zcash-gain-and-turns-a-4-7m-operating-loss-into-39-4m-profit\/\">Cypherpunk\u2019s Zcash strategy<\/a> from one focused mainly on holding the token into one that can produce it.<\/p>\n<p>Cypherpunk held 323,394.38 ZEC as of Aug. 11, roughly 2% of the digital asset's circulating supply, and has set a target of owning 5%. The company said mining could help it reach that goal by producing ZEC at costs below prevailing spot prices.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/zcash-just-exploded-40-and-the-privacy-coin-rally-is-no-longer-just-a-crypto-native-trade\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Zcash just exploded 40% &#8211; and the privacy coin rally is no longer just a crypto-native trade<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>About 1,440 ZEC are distributed to miners each day. Cypherpunk said the output from its new fleet could fund additional <a href=\"https:\/\/cryptoslate.com\/zcash-is-borrowing-cryptos-new-institutional-playbook-as-privacy-goes-mainstream\/\">ZEC<\/a> purchases, future growth and investments in privacy-focused technologies.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-22036185-b5f2-4bb2-8430-2779d0a49f0e.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-555962\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-22036185-b5f2-4bb2-8430-2779d0a49f0e.png\" alt=\"Cypherpunk's new fleet represents about 18% of network computing power as the company builds toward owning 5% of ZEC supply. \" width=\"720\" height=\"1133\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-22036185-b5f2-4bb2-8430-2779d0a49f0e.png 1000w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-22036185-b5f2-4bb2-8430-2779d0a49f0e-191x300.png 191w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-22036185-b5f2-4bb2-8430-2779d0a49f0e-651x1024.png 651w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-22036185-b5f2-4bb2-8430-2779d0a49f0e-768x1208.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-22036185-b5f2-4bb2-8430-2779d0a49f0e-976x1536.png 976w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/><\/a><\/p>\n<p>\u201cUp until now, investors have had limited options for Zcash mining exposure. With the acquisition of this mining fleet, Cypherpunk changes that,\u201d <a href=\"https:\/\/cryptoslate.com\/people\/cameron-winklevoss\/\">Cameron<\/a> and <a href=\"https:\/\/cryptoslate.com\/people\/tyler-winklevoss\/\">Tyler Winklevoss<\/a> said in the announcement.<\/p>\n<p>The company also appointed Kevin Zhang as head of mining. Zhang, who previously helped build major North American mining operations for <a href=\"https:\/\/cryptoslate.com\/companies\/foundry\/\">Foundry<\/a>, said current Zcash mining economics generate stronger returns than <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> mining and artificial-intelligence colocation.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/zcash-beats-bitcoin-by-46-as-privacy-coins-decouple-during-iran-war\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Zcash breaks away from Bitcoin as privacy coin rally finds a second driver<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<h2>The Zcash expansion carries a large equity cost<\/h2>\n<p>Cypherpunk did not pay cash for the $33.33 million mining fleet, tying the cost of its Zcash expansion instead to a potentially substantial increase in its share count.<\/p>\n<p>WTI received a pre-funded warrant covering 43.29 million shares with an exercise price of $0.001. Cypherpunk valued its stock at $0.77 per share for the transaction.<\/p>\n<p>Against the roughly 107.8 million shares outstanding before the deal, full issuance would expand the share count to about 151.1 million. This means the warrant shares would represent roughly 28.7% of that enlarged total.<\/p>\n<p>However, most of it cannot yet be issued.<\/p>\n<p>The agreement initially permits the issuance of 5.37 million shares. Cypherpunk has agreed to seek shareholder approval at its next annual meeting for the remaining shares and to continue seeking approval at later meetings if the proposal fails.<\/p>\n<p>The warrant also prevents WTI from exercising shares that would push its beneficial ownership above 19.99%, meaning the full warrant cannot simply be added to its existing 19.9% stake.<\/p>\n<p>Notably, WTI's influence already extends into Cypherpunk's boardroom. The investor has exercised rights to designate William McEvoy and Khing Oei as directors, while Cypherpunk's governance committee approved the mining purchase as a related-party transaction.<\/p>\n<p>The deal therefore gives Cypherpunk a much larger role in Zcash immediately, while leaving much of the equity cost subject to a shareholder vote.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/zcash-was-rumored-to-have-stopped-working-then-it-became-cryptos-only-winner\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Zcash was rumored to have stopped working &#8211; then it became crypto\u2019s only winner<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>For investors, that vote will determine how far Cypherpunk can expand its share base to finance a strategy that now combines nearly one-fifth of Zcash\u2019s mining power with a treasury already approaching 2% of circulating supply.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Only 5.38 million shares are initially issuable, leaving most of the deal&#8217;s equity impact behind an approval gate.<\/p>\n","protected":false},"author":720,"featured_media":556089,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80573,77968,2376],"tags":[78295],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - 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