Is Zcash the Next Corporate Treasury Choice? Cypherpunk Now Holds Nearly 2%

Cypherpunk Technologies is significantly increasing its investment in Zcash, stirring a discussion about the future role of privacy-focused cryptocurrencies in corporate treasuries. After a recent purchase, the company now owns a notable portion of Zcash's total supply.

Key Takeaways

Cypherpunk Technologies has acquired an additional 56,418.09 ZEC, totaling around $29 million, increasing its total Zcash holdings to 290,062.67 ZEC.
The company aims to achieve ownership of 5% of the Zcash network, focusing on privacy-centered financial solutions.
Zcash has performed well this year, boasting an increase of over 800% within the past 12 months.
The adoption of Zcash is seen as a hedge for privacy, contrasting Bitcoin's position as a long-term value store.
Analysts offer mixed predictions for Zcash's future price movements, with some anticipating further growth and others suggesting potential declines.

Is Zcash the Next Corporate Treasury Play? Cypherpunk Now Holds Nearly 2%

Cypherpunk Strengthens Investment in Zcash

Cypherpunk Technologies has made a significant commitment to Zcash by purchasing an additional 56,418.09 ZEC for approximately $29 million, with an average price of $514.02 per token. With this recent acquisition, their total holdings amount to 290,062.67 ZEC, representing roughly 1.76% of Zcash’s circulating supply. The average cost for their total investment stands at $334.41 per ZEC.

Aiming for 5% of Zcash Network

Will McEvoy, the Chief Investment Officer, stated that Cypherpunk's long-term goal includes attaining 5% ownership of the Zcash network. He highlighted the growing importance of financial privacy while indicating plans to diversify into other privacy-oriented technologies.

As part of a major corporate shift, the company, which was previously known as Leap Therapeutics, rebranded to Cypherpunk Technologies in November. Since then, its stock price has soared by nearly 170%, climbing to approximately $1.18 from around $0.44, according to Google Finance.

Zcash Performance

Zcash itself has been showing remarkable performance in the cryptocurrency market this year, with its value increasing over 800% in the past 12 months, currently trading around $530, as sourced from CoinGecko.

Zcash Trading

In contrast, Bitcoin has seen a slight decline of approximately 5% during the same timeframe, while ZEC has risen nearly 27% just in the past week.

However, it is worth noting that Zcash's daily trading volume has recently decreased by about 50%, now hovering around $499 million within the last 24 hours, indicating a slowdown in market activities following its recent price surge.

Zcash: A Privacy-Conscious Alternative in Corporate Treasuries

Launched in 2016 as a fork of Bitcoin, Zcash shares various key characteristics with BTC, including a cap of 21 million coins and a proof-of-work blockchain. The significant distinction lies in Zcash's privacy features, utilizing zk-SNARKs (zero-knowledge proofs) that allow users to anonymize transaction details, including sender, recipient, and amount, while still providing optional transparency through viewing keys.

These privacy features spark discussions about ZEC as a treasury asset. Bitcoin's popularity among corporations is primarily due to its verifiable scarcity, liquidity, and regulatory clarity, particularly following the approval of U.S. spot Bitcoin ETFs earlier this year. Corporations holding Bitcoin often view it as a long-term asset or macroeconomic hedge, with future gains mainly dependent on price increases rather than operational income.

On the other hand, Zcash is recognized by certain companies, including Cypherpunk and Reliance Global Group, as a privacy-centric hedge. Like Bitcoin, Zcash does not generate cash flow, meaning any treasury revenue would solely come from potential price appreciation.

Market sentiment regarding Zcash's price trajectory remains mixed. Former BitMEX CEO, Arthur Hayes, speculated that ZEC could approach $1,000, suggesting upcoming liquidity shifts favoring privacy-focused assets. Conversely, analyst Eric Van Tassel has cautioned that a decline to $400 is plausible, while macro investor Raoul Pal described Zcash’s price increase as more indicative of capital rotation rather than a solid long-term trend.

Despite its recent rise, Zcash's price remains significantly below its all-time high of $3,191.93, sitting more than 80% lower.