Cypherpunk Technologies swings to Q2 profit on Zcash gains
OverviewUS privacy tech firm's Q2 net income turned positive, driven by unrealized gains on Zcash holdingsQ2 diluted EPS was $0.18, reversing a loss in the prior yrResearch and development expenses fell sharply after clinical trial completion and workforce reductionOutlookCompany has initiated a strategic process to advance the sirexatamab program, including possible partnerships or spin-outNo assurance that the strategic process will result in any transaction or financingCypherpunk continues to focus on Zcash accumulation and sees growing demand for digital privacyResult DriversZCASH PRICE GAINS - Q2 net income benefited from a $46 mln unrealized gain on ZEC holdings as the price rose from $243.35 to $400.09LOWER R&D SPENDING - Research and development expenses fell after clinical trial completion and workforce reductionHIGHER ADMIN COSTS - General and administrative expenses rose due to increased stock-based compensation and payrollCompany press release:Key DetailsMetricBeat/MissActualConsensus EstimateQ2 EPS$0.18Q2 Net Income$39.40 mlnAnalyst CoverageThe one available analyst rating on the shares is "buy"The average consensus recommendation for the biotechnology & medical research peer group is "buy"Wall Street's median 12-month price target for Cypherpunk Technologies Inc is $0.90, about 32.4% above its August 11 closing price of $0.68Reuters Recommended ReadsAug 11 - Fold Q2 revenue falls, misses estimates as bitcoin prices pressure activityAug 10 - Bakkt Q2 revenue falls 70% on digital asset trading slowdownAug 11 - Aardvark Therapeutics Q2 operating expenses fall on paused ARD-101 clinical trials and workforce reductionFor questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .