Cypherpunk's ZCash Bet Pays Off as Bitcoin, Ether Treasury Losses Mount

The company reported net income of $39.4mn for the three months ending 30 Jun, compared with a $16.6mn loss a year earlier. The results were largely driven by the rising price of its Zcash (ZEC) holdings, as it climbed from around $243 to $400 during the quarter.

The results also marked a sharp reversal from the first quarter, when Cypherpunk lost $77.2mn after ZEC fell from $508 to $240. The company recorded a $77.6mn unrealized loss on its Zcash holdings during that period.

The company had been a biotech firm called Leap Therapeutics before rebranding in November 2025 and launching a new strategy focused on buying Zcash. The rebrand included a $58mn private placement led by Winklevoss Capital, an investment capital firm owned by Cameron and Tyler Winklevoss, the founders of exchange operator Gemini.

The gain stands out as some of the largest digital asset treasury (DAT) companies have reported billions of dollars in losses this year resulting from declines in the prices of Bitcoin (BTC) and Ether (ETH). Bitcoin dropped about 14% from the start of April to the end of June, while Ether has fallen around 30% over the same period.

Strategy, the world's largest corporate holder of Bitcoin, recorded an $8.3bn unrealized loss on its digital assets in the second quarter, leading to an $8.2bn net loss for the period.

Meanwhile, Ether treasury company SharpLink recorded a $321mn unrealized loss on its crypto assets in the second quarter, and a $394.3mn net loss. 

Zcash bet pays off

Cypherpunk, taking a contrarian approach befitting its new name, made ZEC rather than BTC or ETH the main part of its crypto treasury strategy, betting on growing demand for financial privacy.

As of 11 Aug, the company held 323,394 ZEC, at an average purchase price of $341.83. That represents nearly 2% of the token currently in circulation. Zcash is a privacy-focused cryptocurrency that uses zero-knowledge proofs, allowing users to verify transactions without revealing details such as the sender, recipient or amount.

"In an increasingly AI-driven economy, the demand for true privacy is moving from a technical preference to a civilizational necessity," Cypherpunk Chief Investment Officer Will McEvoy said.

Cypherpunk built its Zcash position after the privacy-focused cryptocurrency became one of the best-performing large-cap tokens of 2025.

ZEC rose more than 800% last year, climbing from about $60 at the start of 2025 to more than $500 by the end of December. The rally came as investors showed greater interest in privacy-focused digital tokens and tools that allow users to keep more of their onchain activity private.

The company has previously said its longer-term goal is to accumulate as much as 5% of Zcash's circulating supply. On 12 Aug, ZEC was trading at about $497 as of 18:40UTC, up around 3% over the previous 24 hours.

The pressure on DATs is on

Cypherpunk's determination to keep buying ZEC contrasts with other DATs as falling crypto prices have made it harder for many such firms to raise money and keep buying cryptocurrencies.

Even Strategy, the giant of the group, has backed away from its long-held "never sell" stance, selling some of its Bitcoin holdings to fund dividends on preferred stock issued to finance further Bitcoin purchases.

Other entities have pulled back even further: Ether-focused FG Nexus announced in July that it would leave its digital asset business, while The Ether Machine and ReserveOne canceled plans to go public this year.

The pressure has raised questions about whether the rapid growth of crypto treasury companies can continue in a weaker market. Cypherpunk's results also highlight how quickly things can change based on the token a DAT chooses to hold.