ZEC Rallies as Cypherpunk Targets 5% of Zcash Supply

Zcash (ZEC) is attracting significant institutional attention as Cypherpunk Technologies intensifies its accumulation strategy. The privacy-focused asset now forms the core of Cypherpunk's $152 million treasury after a $29 million purchase this week. This move underscores a broader market shift toward valuing transactional privacy. ZEC's price has responded with a 3% gain in 24 hours, trading near $539 amid the news.

What Is Cypherpunk Technologies' Zcash Strategy?

Cypherpunk is methodically accumulating ZEC to gain influence over the network's governance. The Nasdaq-listed company, backed by the Winklevoss twins, now holds 290,062 tokens after its latest $29 million purchase. That represents 1.76% of the circulating supply, acquired at an average cost of $334.41 per token. Cypherpunk aims to control 5% of ZEC's total supply to shape treasury decisions and protocol development.

The strategy mirrors MicroStrategy's Bitcoin accumulation but targets a privacy coin. Chief Investment Officer Will McEvoy emphasized Zcash's zero-knowledge proof technology as foundational for digital privacy. Cypherpunk plans continued purchases while expanding into privacy-preserving technologies beyond ZEC.