Zcash Treasury Company Launches With Winklevoss Backing

Nasdaq-listed Leap Therapeutics has officially rebranded to Cypherpunk Technologies Inc. as part of its strategy to integrate digital assets by accumulating ZEC, the native token of the privacy-focused cryptocurrency Zcash. The Cambridge-based biotechnology firm announced its new direction on Wednesday, following a successful $58.88 million private placement led by Winklevoss Capital, the venture capital firm founded by Gemini co-founders Cameron and Tyler Winklevoss.

The company has invested $50 million of the funding proceeds to purchase 203,775.27 ZEC at an average price of $245 per token. Additionally, it will adopt a new ticker symbol, CYPH, starting Thursday. This move positions Cypherpunk Technologies among a growing number of public companies using cryptocurrency as part of their balance-sheet strategies, echoing similar initiatives like Strategy's Bitcoin playbook.

Cypherpunk Technologies has chosen to focus on Zcash, the leading privacy-focused cryptocurrency that employs zero-knowledge proofs to enable transaction verification without exposing wallet addresses or amounts. Unlike Bitcoin's fully transparent ledger, Zcash provides enhanced privacy features. Zcash has recently experienced a dramatic price surge, climbing nearly tenfold in two months to peak close to $735, before stabilizing at around $464 early Wednesday, according to CoinGecko data.

As part of the rebranding effort, Douglas E. Onsi, President and CEO of Cypherpunk Technologies, emphasized the company's focus on building long-term shareholder value through its participation in Zcash. Leadership changes include the appointment of Khing Oei as Chairman and Will McEvoy, a Principal at Winklevoss Capital, as the company's first CEO effective next Monday. Khing Oei is also the founder and CEO of Treasury, a Netherlands-based Bitcoin treasury company that recently raised $147 million (€126 million).

Will McEvoy highlighted how Cypherpunk Technologies has cultivated a 'value-aligned investor base,' prioritizing the long-term importance of Zcash and privacy solutions in contrast to other crypto treasuries, which faltered due to 'short-term, mercenary capital.' This vision reflects the core principles of the cypherpunk movement and resonates amid increasing concerns about on-chain surveillance.

Galaxy Digital research analyst Will Owens noted in a report that Zcash is gaining traction as an alternative to Bitcoin, particularly due to growing concerns over the transparency of on-chain transactions. Advocates of Zcash describe it as 'encrypted Bitcoin,' aligning with cypherpunk ideals while addressing privacy concerns often associated with Bitcoin's transparent network.

The parent company of Gemini, the crypto exchange founded by the Winklevoss twins, recently announced its foray into prediction markets and shared its first quarterly report as a public company. Gemini reported a $159.5 million net loss in its Q1 earnings, largely due to expenses related to its IPO and heightened marketing costs, according to a shareholder letter sent on Tuesday.