Cypherpunk launches Zcash mining fleet controlling 18% of network hashrate

Cypherpunk Technologies is expanding its footprint in the Zcash ecosystem, launching what it says is the world’s largest Zcash mining operation after acquiring a mining fleet from Winklevoss Capital, signaling growing institutional interest in the privacy-focused network.

Cypherpunk said Tuesday that it acquired the fleet through an equity-based transaction valued at $33.33 million. The mining operation is already online at facilities across the United States, producing roughly 4.2 GSol/s, or about 18% of the Zcash network’s current hashrate.

If the company’s figures are accurate, the transaction gives a single publicly traded company a significant share of Zcash’s mining capacity.

The expansion adds mining to Cypherpunk’s existing Zcash holdings, which currently stand at 323,394 ZEC, representing about 1.9% of the cryptocurrency’s circulating supply. The company has set a target of eventually holding 5% of the ZEC supply.

Cypherpunk has pitched Zcash mining as offering more attractive economics than Bitcoin mining or AI data center workloads at current market conditions. However, those economics depend heavily on factors including ZEC’s price, network hashrate, mining difficulty and operating costs.