Cypherpunk Technologies Launches $33.3M Zcash Mining Operation Controlling 18% of Network Hashrate

Cypherpunk Technologies has expanded its Zcash strategy from coin accumulation to direct token production, launching a domestic mining operation that commands nearly a fifth of the privacy network’s total computing power.

The Nasdaq-listed company said Monday it launched Cypherpunk Mining through a $33.33 million equity-based deal with Winklevoss Capital, acquiring the latest-generation Z15 Pro machines and their hosting agreements.

The U.S.-based fleet is live now, running about 4.2 GSol/s of Equihash hashrate, which the company estimates at roughly 18% of the entire Zcash network. The purchase was funded not with cash but through a pre-funded warrant for about 43.3 million Cypherpunk shares, pegged to a stock price of $0.77.

The deployment relies on Bitmain Antminer Z15 Pro machines designed for the Equihash algorithm, each delivering an operational output of 840 KSol/s. Deploying these units across host facilities establishes a dedicated U.S. processing presence for a network historically dominated by overseas operations.

“Zcash hashrate has been concentrated in a small number of miners, pools, and ASIC makers—almost all of it outside the United States,” Cameron Winklevoss posted on X following the announcement. “Cypherpunk is changing that. Our fleet is deployed across U.S. facilities, owned outright, and zero debt and power costs locked in low.”

To manage the operational push, Cypherpunk brought on industry veteran Kevin Zhang, former Senior Vice President of Mining at Foundry Digital, to serve as head of mining. The production capability directly backs the firm’s treasury strategy, where it already holds 323,394 ZEC—equal to 1.92% of the circulating token supply—with an ultimate goal of securing 5%.

With network protocol rules issuing roughly 43,800 ZEC to miners each month, internal mining allows the enterprise to acquire coins at production costs below prevailing spot prices. Chief Investment Officer Will McEvoy noted that mined ZEC will fund ongoing operations, additional token purchases, and new privacy software initiatives.

The shift into direct mining follows market volatility for Zcash, which currently trades above $500—up 7% over the past week but down approximately 28% from its high near $700 last year. Cypherpunk stated its equity share price will remain closely correlated to ZEC price movements as the operational expansion moves forward.