Zcash Price Declines Over 50% Since DAT’s Most Recent Winklevoss-Backed Purchase

Zcash Slides More Than 50% After Winklevoss‑Backed Treasury’s Last Accumulation

By [Your Name] – February 7 2026

The privacy‑oriented cryptocurrency Zcash (ZEC) has lost roughly 60 % of its value since peaking in mid‑November 2025, extending a multi‑month decline that has erased most of the gains recorded in the fourth quarter of last year. The slide is especially notable because it follows the most recent public purchase by Cypherpunk Technologies, a digital‑asset treasury (DAT) backed by the Winklevoss twins.

Timeline and Numbers

Cypherpunk’s holdings have remained static since the December purchase, according to CoinGecko data. At current levels, the treasury carries an unrealised paper loss of about $25.7 million, a 26.5 % decline from the acquisition cost.

Market Context

• Price Momentum – After the September‑October rally, ZEC has retraced the majority of its 2025 gains, yet it still trades close to four times the pre‑rally levels observed in early September.
• DAT Landscape – Cypherpunk’s relatively modest accumulation cadence contrasts sharply with other high‑profile DATs:
  • Strategy (Michael Saylor’s BTC DAT) continues weekly Bitcoin purchases, despite an estimated $4.36 billion unrealised loss as BTC prices fall.
  • BitMine (Tom Lee’s ETH DAT) likewise maintains its buying rhythm, now facing roughly $6 billion in unrealised losses as ETH slipped below $2,000.
• Corporate Movements – Gemini, the exchange founded by the Winklevoss twins, announced a restructuring plan on Feb 5, 2026, cutting about 25 % of its workforce and exiting several international markets to focus on the U.S.

Analysis

1. Impact of Treasury Holding Size
   At roughly 1.76 % of total ZEC supply, Cypherpunk’s position is sizable but far from its stated target of 5 %. The pause in further purchases suggests a cautious stance amid volatile market conditions. The sizeable unrealised loss may pressure the firm to reassess its accumulation strategy, especially if ZEC’s price trajectory remains bearish.

2. Price Reaction to Public Disclosures
   While the Dec. 30 purchase was publicly disclosed, the subsequent price decline appears driven more by broader market weakness than by specific sentiment around the DAT. ZEC’s price has been trending downwards across the crypto sector, mirrored by BTC and ETH’s own declines.

3. Investor Sentiment Toward Privacy Coins
   Zcash’s strong rally earlier in the year highlighted renewed investor interest in privacy‑focused assets. The current pullback, however, underscores the sector’s susceptibility to macro‑level risk aversion and regulatory uncertainty.

4. Comparison with Other DATs
   Unlike Strategy and BitMine, which keep buying despite deep unrealised losses, Cypherpunk’s temporary halt could be interpreted as a more risk‑averse approach, possibly reflecting differences in capital allocation philosophies between Bitcoin/Ethereum‑centric funds and those focused on privacy tokens.

Key Takeaways

• ZEC has fallen >50 % since Cypherpunk’s last disclosed acquisition on Dec 30 2025, erasing much of its 2025 rally.
• Cypherpunk’s treasury now holds ~290k ZEC, equivalent to roughly 1.76 % of total supply, with an unrealised loss of $25.7 million at current prices.
• The firm’s stated goal is to reach 5 % of supply, but accumulation has stalled amid a bearish market.
• Other major DATs (Strategy, BitMine) continue buying despite larger paper losses, highlighting divergent risk‑management approaches.
• Gemini’s restructuring signals broader industry adjustments that may affect future funding and strategic decisions for DATs linked to the Winklevoss ecosystem.

Data sources: CoinGecko, The Defiant, Google Finance, DefiLlama, company press releases.

Source: https://thedefiant.io/news/tradfi-and-fintech/zcash-drops-50-percent-since-last-cypherpunk-last-zec-purchase