Cypherpunk Technologies launches largest Zcash mining operation with $33M Winklevoss backing
The Nasdaq listed company says its 4.2 GSol/s fleet represents about 18% of the Zcash network as it works toward holding 5% of ZEC supply.
Cypherpunk Technologies launched what it says is the world’s largest Zcash mining fleet through a $33.33 million equity transaction with Winklevoss Capital.
The fleet is already online with approximately 4.2 GSol/s of Equihash hashrate deployed across facilities in the US, representing about 18% of the total Zcash network hashrate.
Cypherpunk acquired latest generation Z15 Pro mining machines and related hosting agreements from Moria Mining and Winklevoss Treasury Investments.
The transaction was funded through a prefunded warrant allowing Winklevoss Treasury Investments to purchase about 43.3 million Cypherpunk shares at an exercise price of $0.001 per share, based on a common stock purchase price of $0.77.
The company said the mining operation will provide additional ZEC that can support future growth, further ZEC purchases, and investments in privacy focused technologies.
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Cypherpunk currently holds 323,394.38 ZEC, representing about 1.92% of circulating supply, and is targeting ownership of 5% of ZEC supply. Approximately 43,800 ZEC are distributed to miners each month, according to the company.
The launch expands Cypherpunk’s Zcash strategy beyond its treasury holdings and its investment in ZODL, a Zcash wallet. The company said the mining fleet gives public market investors exposure to both Zcash mining economics and potential appreciation in its ZEC treasury.
Kevin Zhang, who previously worked at Foundry and has experience operating Bitcoin and Zcash mining infrastructure, has joined Cypherpunk as head of mining.