Fortitude commits $45M to Zcash mining, buys Nebraska assets

Fortitude Mining agreed to roughly $45 million in purchases for mining equipment and Nebraska power, land and buildings to increase company-controlled power and data-center capacity for Zcash mining.

The transactions include a $31.5 million equipment purchase commitment and two infrastructure acquisitions totaling about $13.9 million. Fortitude reported $12.6 million of the equipment commitment had been paid by its latest financial statements, with $18.9 million remaining payable during 2026.

Fortitude closed a $7.65 million acquisition in Aurora, Nebraska, in October 2025 aimed at securing owned power capacity. On July 7, 2026, the company completed a $6.25 million purchase in Juniata, Nebraska, that included power contracts, land, a building and additional mining equipment. About $985,000 of the Juniata consideration was satisfied by prior deposits and $466,000 by proceeds from the sale of mining equipment; the remainder was paid in cash. Fortitude allocated portions of the Juniata purchase to a power contract ($4.5 million), mining and computer equipment ($2.7 million), a building ($567,000) and land ($134,000), before transaction costs.

Fortitude reported controlled data-center capacity of more than 60 megawatts in 2026. The company plans to finance the remaining machine purchases with cash on hand, operating cash flow and borrowings from its parent, Digital Currency Group. On June 1 Fortitude entered a $26 million term-loan facility with Digital Currency Group; drawn amounts generally carry an 11% annual interest rate and mature in June 2028.

Fortitude has shifted its mining focus toward Zcash. In the first quarter of 2026 Zcash accounted for 61% of the company’s mining revenue, up from 11% a year earlier, while Bitcoin’s share fell to 36% from 79%. In dollar terms Zcash generated $11.8 million in first-quarter revenue versus $6.9 million from Bitcoin.

Production trends reflected network changes. Fortitude mined 39,062 ZEC in the first quarter, 36% fewer than a year earlier, even as its average number of online Zcash machines rose 23% to 9,581 and its deployed Zcash hash rate increased 6%. The company said faster growth in the network’s total computing power and higher mining difficulty outpaced its capacity additions. Zcash output for the second quarter was 33,634 ZEC. Fortitude reported an average selling price of $272 per ZEC in the first quarter, compared with $40 a year earlier. For 2025 the company produced 230,124 ZEC, down 40% from 380,723 in 2024; the company attributed the decline primarily to the November 2024 Zcash halving and higher network difficulty.

Financials showed lower costs and narrower losses in the first quarter. Direct cost of revenue fell 39% to $10.4 million while revenue declined 12% to $19.2 million; revenue less direct costs before depreciation rose to $8.8 million from $4.8 million a year earlier. Fortitude reported a first-quarter net loss of $4.6 million, compared with a $6.8 million loss a year earlier. Depreciation and amortization totaled $5.9 million for the quarter and general and administrative expenses increased to $5.4 million.

For full-year 2025 Fortitude posted a $12.7 million loss on $89.5 million of revenue, versus a $14.4 million loss in 2024. Direct cost of revenue for 2025 rose 11% to $60.5 million and depreciation and amortization reached $32.6 million. At March 31 the company reported $8.9 million in cash, $1.9 million of digital assets and $67 million of total assets. The $18.9 million remaining equipment commitment exceeded the company’s cash balance, making operating cash flow and access to DCG funding important to complete the planned purchases.

The acquisitions and machine orders are being executed ahead of Fortitude’s proposed merger with Nasdaq-listed HeartSciences Inc., a transaction that would provide a public listing for the Digital Currency Group–owned miner.