Winklevoss Twins Launch Privacy Treasury Company as AI Drives Zcash Demand
The Winklevoss twins launched Cypherpunk, a digital asset treasury company that raised $100 million to acquire Zcash tokens. According to Cointelegraph, Tyler Winklevoss announced the company aims to accumulate up to 5% of the circulating ZEC supply. Cypherpunk currently holds 233,644 ZEC tokens valued at approximately $140 million at current prices.
The Gemini co-founders spoke exclusively to Cointelegraph during the Bitcoin Amsterdam conference. They explained their newfound focus on privacy stems from AI advancements over the past two years. Tyler Winklevoss described Zcash as "encrypted Bitcoin" where Bitcoin stores value and Zcash enables private transactions. The brothers view the dawn of AI as the catalyst for privacy protocols, similar to how the 2008 financial crisis catalyzed Bitcoin adoption.
Cameron Winklevoss noted they have been bullish on Zcash since its 2016 launch. However, the protocol has reached a new inflection point in 2025 comparable to Bitcoin's early growth phases. The twins emphasized they do not view cryptocurrency as a zero-sum game. They believe innovation in privacy complements Bitcoin's soundness rather than competing against it.
Why Privacy Treasury Companies Matter Now
Digital asset treasury companies have faced challenges throughout 2025 as investor enthusiasm waned. We reported that 25% of public Bitcoin treasury firms had market caps below their BTC holdings by September 2025, with average daily purchases falling to the lowest levels since May. Cypherpunk's $100 million raise represents a contrarian bet on privacy coins rather than Bitcoin.
The timing coincides with Zcash's November 2025 halving event that reduced block rewards by 50%. According to CoinCentral, Cypherpunk recently added $18 million in ZEC holdings as institutional accumulation accelerated. The halving dramatically slows new token issuance, tightening supply as demand increases from privacy-conscious users and investors.
Zcash has surged over 1,100% year-to-date in 2025, reaching $600 levels. The Grayscale Zcash Trust manages $137 million in assets, reflecting growing institutional interest. Shielded transactions now account for nearly 30% of ZEC's circulating supply, up from under 5% in 2017. This demonstrates real adoption of privacy features beyond speculative trading.
Broader Impact on Cryptocurrency Privacy Adoption
The Cypherpunk launch may accelerate privacy coin adoption across traditional finance and tech sectors. CoinDesk Research found that shielded adoption climbed to roughly 20% of supply by 2025. The Zashi wallet makes private transfers the default user experience, expanding the anonymity set for all network participants.
Privacy protocols face regulatory scrutiny that could limit mainstream adoption. However, Zcash's optional privacy model allows users to choose between transparent and shielded addresses. This flexibility may help Zcash navigate compliance requirements better than competitors like Monero that mandate full privacy. Institutional investors can demonstrate regulatory compliance when needed while maintaining transaction privacy.
The Winklevoss investment reflects a broader narrative shift in cryptocurrency markets. As AI capabilities expand, financial privacy becomes more valuable to individuals and corporations. Bitcoin's transparent ledger allows anyone to track wallet balances and transaction history. Zcash offers cryptographic privacy through zero-knowledge proofs that hide sender, receiver, and transaction amounts.
Whether other institutional investors follow the Winklevoss lead remains uncertain. Privacy coins represent less than $20 billion in combined market capitalization compared to Bitcoin's $1.9 trillion. However, if AI-driven surveillance concerns intensify, demand for privacy-preserving financial infrastructure could grow substantially over the next decade.
