Cypherpunk owns 290,062 ZEC after an investment of $28 million in the privacy bet

Cypherpunk Technologies, the digital asset treasury firm backed by the Winklevoss brothers, has solidified its position in the Zcash ecosystem with a new $28 million purchase. The company now holds approximately 290,062 ZEC tokens, representing about 1.76% of the total circulating supply of this privacy coin listed on Nasdaq.

Strategic Zcash Accumulation in Volatile Times

On Tuesday, Cypherpunk disclosed that it acquired 56,418 ZEC at an average price of $514.02 per token. With a cost basis of $334.41 per unit, the company ranks among the few crypto treasury firms maintaining significant gains even after the broad market correction that has affected digital assets since October. This accumulation strategy reflects a deliberate long-term bet on privacy coins, a segment that has experienced a notable shift in investor sentiment.

Unrealized Gains in a Challenging Market

Despite recent crypto volatility, Cypherpunk’s cost structure demonstrates smart resource management. The average entry price of $334.41 compares favorably to the current $300.59, reflecting both purchase periods during market dips and ZEC’s relative resilience compared to other cryptocurrencies. Over the past seven days, Zcash has experienced a -16.74% correction, though it maintains a long-term upward trajectory.

Resurgence of Interest in Privacy Coins

Zcash has defied broader negative market trends, recording an increase of over 1,200% since September. This exceptional performance reflects a deeper shift in how investors evaluate privacy and anonymity on blockchain networks. Will McEvoy, Cypherpunk’s Chief Investment Officer, emphasized in the official statement that the firm “continues to execute our goal of accumulating 5% of the Zcash network” and highlighted that the company is “well-positioned for a market that is re-evaluating the social importance of privacy.”

This move aligns with a broader trend of revaluing privacy-focused coins, in a context where concerns about digital surveillance and data control are increasingly central to conversations within crypto communities and regulators.

Investment Trajectory and Next Steps

The $28 million purchase announced this week represents continuity in Cypherpunk’s accumulation strategy. In November, the company had already acquired an additional $18 million in ZEC, bringing its holdings to current levels. With a declared goal of 5% of Zcash’s supply, the firm projects future acquisitions as market dynamics permit.

CYPH’s shares reflected the announcement with an 11% increase to $1.31 on Tuesday, though they later experienced a slight 1.5% correction in pre-market trading. This pattern suggests that investors recognize the strength of Cypherpunk’s position, even as the broader market navigates periods of uncertainty.