Author:Protos
Compiled by: Deep Tide TechFlow
Deep Tide Introduction: The Winklevoss-backed Zcash (ZEC) treasury company has a market value less than half its holdings and now relies on anti-cancer drugs to tell a new story. This exposes the common discount dilemma faced by listed crypto companies and also reminds ZEC investors to pay attention to corporate financing risks.
The Winklevoss-backed Zcash (ZEC) treasury company Cypherpunk Technologies announced plans to shift its focus to its anti-cancer drug candidate. The company reported a net loss of $37.8 million for the first six months of 2026.
The company admitted that unless ZEC prices rebound soon, it will need to raise significant funds to cover upcoming FDA trials.
The company projected today: "We expect to continue generating operating losses for the foreseeable future."
Cypherpunk holds ZEC worth approximately $157 million, but Nasdaq traders value the entire company at only $74 million.
This equates to a 0.47x multiple of its basic asset net value (mNAV). It's not surprising that crypto treasury stocks continue to trade below their holding value.
If pre-funded warrants and other sweeteners are included in the company's self-proclaimed enterprise value mNAV, the multiple on the front page rises to 0.96x—still below the value of its ZEC holdings.
Chart: Cypherpunk Technologies five-year stock price chart. Source: TradingView
Backed by Cameron and Tyler Winklevoss
Cameron and Tyler Winklevoss are the billionaires who helped build the company's ZEC brand.
Initially, the company was successful, acquiring ZEC at an average purchase price of $341.84—well below the current market price of $486 for ZEC.
The company's stock reached $3.70 last November but has now fallen back below $0.69 per share.
Cypherpunk has lost tens of millions this year yet continues to plan an expensive FDA trial path for its anti-cancer drug. The stock is down 40% this year and 96% over the past five years.
The Winklevoss twins' controlled exchange Gemini is the custodian for the company's ZEC.
Anti-Cancer Trials Are More Costly, ZEC Can't Help
Cypherpunk's anti-cancer drug candidate is the anti-DKK1 antibody Sirexatamab. In a randomized Phase 2 study, it failed to outperform the control group in progression-free survival across all patients.
The company attributed this to insufficient power in the final analysis.
On the digital asset treasury side, ZEC prices have been flat year-to-date, so that hasn't helped either.
The FDA still granted the drug candidate Fast Track designation in May, a status that expedites regulatory review. Regulators also agreed to a Phase 3 trial protocol for colorectal cancer involving approximately 270 patients.
Onsi stated that the company is "conducting a strategic process to decide the best path forward for sirexatamab: either as a spun-out company with separate financing or moving forward with a partner equally committed to cancer patients."
In simple terms, this candidate needs more money.
Tyler Winklevoss wrote at launch: "We plan to continue accumulating ZEC rapidly, aiming for Cypherpunk to hold at least 5% of the total ZEC supply."
Nine months later, the company now holds 323,394 ZEC, representing 1.92% of the circulating supply.
As of June 30, the company had only $7.6 million in cash and cash equivalents, $500 million in accumulated deficit, ongoing loss-making operations, and an expensive path to FDA approval for an idealistic drug.
