Zcash treasury firm and Leap Therapeutics owner, Cypherpunk Technologies, reported $39.4 million in second-quarter net income, reversing a $16.6 million loss a year earlier.
Cypherpunk recorded a $4.7 million operating loss, while a $46 million unrealized gain on its ZEC treasury drove the change in its bottom line.
Research and development expense accounted for $0.2 million of the quarter’s costs, while general and administrative expense was $4.5 million. That left the company loss-making at the operating level before the ZEC revaluation was reflected in the income statement.
The accounting treatment recognizes price movements without requiring Cypherpunk to sell the tokens.
The $46 million gain was a period-end accounting result, and Cypherpunk marks its Zcash holdings to market at each reporting date. It used a ZEC price of $400.09 at June 30, valuing the treasury at $129.4 million on its balance sheet.
Cypherpunk said it held 323,394.38 Zcash as of Aug. 11 at an average purchase price of $341.83, which is approximately 1.92% of the circulating supply. That average implies an aggregate acquisition cost of roughly $110.5 million.
ZEC traded at $489.34 on CoinGecko at 11:27 UTC on Aug. 12, putting the holdings at approximately $158.2 million.
Cypherpunk reported $7.6 million in cash and cash equivalents as of June 30, separate from the ZEC balance it classified as a digital asset receivable. The quarter shows how the company’s earnings can be shaped by the price used to revalue its treasury.
The cash figure sits alongside a separate decision in Cypherpunk’s biotechnology business. Its wholly owned biotech subsidiary, Leap Therapeutics, initiated a process to secure the resources needed to advance sirexatamab into Phase 3 development.
Leap said the process could include financing the program as an independent entity or pursuing a transaction with a pharmaceutical or biotechnology company. The alternatives include a partnership, a license, a collaboration, a sale, or another business combination.
Cypherpunk set no timetable and cautioned that financing or a transaction was not assured, and it did not link Leap’s resource search to the Zcash strategy.
For investors, the immediate picture is a profitable quarter dominated by an unrealized token gain, alongside a drug program whose next stage still depends on securing additional resources.