Cypherpunk secures a $46M Zcash gain and turns a $4.7M operating loss into $39.4M profit
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 quarterโs 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.
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