Cypherpunk Technologies has secured a deal to acquire a Zcash mining rig fleet from investment firm Winklevoss Capital. The equity-based transaction is valued at $33.33 million, transferring full control of the hardware to Cypherpunk. The mining fleet is fully operational across various facilities located in the United States. Its workload generates 4.2 GSol/s of computing power, a capacity that immediately accounts for 18% of the entire Zcash network hashrate. This infrastructure dominance has led Cypherpunk to describe its operation as the largest Zcash mining facility in the world today.
Targeting Five Percent of Supply
The acquisition of the fleet bolsters the company’s coin holdings. Reports note a holding of 323,394 ZEC in Cypherpunk’s wallets. This stash of coins is equivalent to 1.9% of the total circulating Zcash supply in the market. The company is not stopping there, setting a long-term target to control and hold 5% of the entire global ZEC supply.
This move comes amid the price movement of the privacy coin on exchanges. The price of ZEC has surged by over 1,300% in the last 12 months - although its chart has begun to correct from its peak. Cypherpunk’s business calculations show mathematical reasoning that favors Zcash. The company believes ZEC mining economics are currently more profitable than dedicating power to mine Bitcoin. This business model is also claimed to offer better prospects than simply servicing workloads for the artificial intelligence industry.
Ironwood Patch to Close Loophole
Cypherpunk’s machines are now tasked with validating a network that has just passed a critical phase. The Zcash network successfully completed a key upgrade named Ironwood on July 28. This system upgrade activates a new shielded transaction protocol for its users.
The Ironwood protocol was deployed to replace the old Orchard pool system. This overhaul was necessary after developers discovered an architectural loophole in the legacy system. The vulnerability carried risk as it could potentially allow hackers to counterfeit ZEC within the shielded pool without triggering network alarms. Following a thorough investigation, the development team guaranteed there were no traces of exploitation and no counterfeit coins were created before the loophole was closed. Zcash averted the crisis, and the network’s continuity is now supported by its largest player. Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
