The entity that already held nearly a fifth of Cypherpunk Technologies and had placed two people on its board sold the company nearly 5,000 Zcash mining computers last week. In return, it took a warrant to buy tens of millions of new Cypherpunk shares at a fraction of a cent each.
Under the asset purchase agreement signed August 17, Cypherpunk's mining subsidiary agreed to buy 4,902 Bitmain Antminer Z15 Pro computers along with three hosting contracts for data center facilities in Barstow, Texas; Morristown, Tennessee; and Fairview, West Virginia. The stated purchase price was $33,333,333, paid entirely through a pre-funded warrant issued to Winklevoss Treasury Investments covering 43,290,042 new shares of Cypherpunk common stock. The warrant's exercise price is $0.001 per share — a fraction of a cent — making it, in practice, a near-certain equity grant rather than an option anyone is likely to walk away from.
For anyone holding Cypherpunk stock today, that warrant is what the deal is about. It covers roughly 43 million shares against a free float of about 75 million. Every new share issued under it makes the existing ones a smaller piece of the same company. Whether it gets exercised in full depends on a shareholder vote that has not yet been scheduled.
Shares closed 32.85% higher at $1.0700 on August 19, after the company filed the deal, on dollar volume of about $10.8 million across 21,682 trades.
The per-share purchase price was set at $0.77, pegged to a five-day average of Cypherpunk's Nasdaq closing price before the agreement was signed. Until shareholders approve the full issuance, WTI cannot hold more than 19.99% of shares outstanding — a cap built into the warrant's terms. The company has committed to putting the question to shareholders at its next annual meeting.
The seller, Moria Mining LLC, is an affiliate of Winklevoss Treasury Investments, the warrant recipient. WTI had already held 19.9% of Cypherpunk's stock before the deal and had previously exercised its right, under an agreement from October 2025, to appoint two directors to the board: William McEvoy and Khing Oei. The filing says the deal was reviewed and approved by the company's nominating and corporate governance committee, which it describes as consisting of disinterested directors.
WTI has agreed to vote its existing shares in favor of approving the full warrant exercise at the annual meeting. The rest of the shareholder base will decide whether the entity that sold the equipment also gets to extend its stake well beyond the current cap.