Leap Therapeutics (LPTX), an oncology biotechnology company has announced a radical change in its corporate and treasury strategy, now focusing on the cryptocurrency zcash (ZEC).
The company has not only committed significant funds to the acquisition of ZEC, but has also initiated a rebranding process to operate under the name Cypherpunk Technologies Inc.., a movement that has had a strong impact on its stock price.
Cypherpunk Technologies has invested 50 million dollars of a previously announced private placement to acquire 203,775.27 units of ZEC, establishing an average purchase price of $245.37 per unit.
This strategic shift follows a digital asset treasury model through the sale of shares and debt, a formula that other corporations have applied with various digital assets, as reported by CriptoNoticias. With this acquisition, The company aims to obtain 5% of the total supply of zcash.
Since the maximum supply of the asset is set at 21 million units, the 5% target represents 1,050,000 ZEC units. In a hypothetical scenario, and considering a current market price of the digital currency of $507 per unit, the value of this future holding would amount to approximately $532 million, which could be interpreted as a significant vote of confidence that positively influences the future valuation of the asset.
The name change will become official starting today, November 13. The company plans to list on the Nasdaq under the new stock symbol CYPH.
This announcement and the new ZEC-based treasury policy sparked a strong reaction in the stock market. Leap Therapeutics (LPTX) Stock experienced a 400% increase in the last weekas seen in the following graph.
The trend confirms the market’s interest in companies that integrate digital assets into their corporate reserves, although the long-term success of this strategy will depend on the evolution of Zcash and the vision that the new Cypherpunk Technologies managed to execute.