Leap Therapeutics Reports $4.8M Net Income in Strategic Shift to Digital Assets

Leap Therapeutics, Inc., now operating under the name Cypherpunk Technologies Inc., reported a significant shift in its business strategy and financial performance in its latest 10-K filing. For the fiscal year ending December 31, 2025, the company recorded a net income of $4.8 million, a notable recovery from a net loss of $67.6 million in the previous year. This turnaround was primarily attributed to a $50.4 million unrealized gain on the change in fair value of an embedded derivative, alongside a reduction in total operating expenses from $70.1 million in 2024 to $41.1 million in 2025.

The company’s research and development expenses decreased significantly, from $57.2 million in 2024 to $25.7 million in 2025, largely due to the completion of clinical trials for its lead product candidate, sirexatamab (DKN-01). The reduction in expenses was also influenced by a decrease in headcount and related payroll costs. General and administrative expenses also saw a decline, reflecting a strategic effort to streamline operations. As of December 31, 2025, the company had cash and cash equivalents of $14 million, which it believes will support its operations for at least the next 12 months.

In October 2025, Leap announced a $58.88 million private placement to fund its new digital asset treasury strategy, focusing on acquiring Zcash (ZEC). This strategic pivot aims to leverage the growing demand for privacy-preserving technologies in the digital economy. The company has begun accumulating ZEC, with a goal of holding at least 5% of the total circulating supply over time. As of March 11, 2026, Leap held approximately 294,743 ZEC, valued at an average purchase price of $335.89, representing about 1.76% of the total circulating supply.

Operationally, Leap has undergone significant changes, including a reduction in its workforce and a restructuring of its business model to focus on both digital assets and biotechnology. The company currently employs six full-time staff members and has indicated that it may need to raise additional capital to support its ongoing operations and product development efforts. The filing also highlighted the inherent risks associated with its digital asset strategy, including regulatory scrutiny and market volatility, particularly given the fluctuating nature of ZEC prices.

Looking ahead, Leap anticipates continued operating losses as it invests in its digital asset strategy and the development of its product candidates. The company is actively seeking additional funding through various means, including equity offerings and collaborations, to sustain its operations and support its strategic initiatives. The future success of Leap will depend on its ability to navigate the complexities of both the biotechnology and digital asset markets while achieving regulatory approvals for its therapeutic candidates.