Fortitude Invests $45M in Zcash Mining Infrastructure to Drive Vertical Integration
Digital Currency Group-owned Fortitude Mining has invested approximately $45 million in mining hardware and Nebraska infrastructure as it accelerates its vertical integration strategy and shifts its primary focus from Bitcoin to Zcash.
The investment comprises a $31.5 million commitment for new mining machines and two acquisitions totaling $13.9 million for power contracts, land, buildings, and equipment in Nebraska. The purchases are intended to turn Fortitude from a miner reliant on third-party infrastructure into a more vertically integrated operator with company-controlled power and data-center capacity, which now exceeds 60 megawatts.
Fortitude is also pursuing a merger with Nasdaq-listed HeartSciences Inc., which would give it a public listing.
The shift in focus is evident in the revenue breakdown. Zcash generated 61% of Fortitude’s mining revenue in the first quarter of 2026, up from 11% a year earlier, while Bitcoin’s share fell to 36% from 79%. Zcash revenue surged to $11.8 million, nearly five times the previous year, as the average selling price of ZEC rose to $272 from $40. Bitcoin revenue declined 60% to $6.9 million as the company reduced its Bitcoin capacity.
Despite deploying more Zcash machines, production fell 36% to 39,062 ZEC due to increased network difficulty and the November 2024 halving. Higher prices, however, more than compensated for the lower output.
Fortitude reported a first-quarter net loss of $4.6 million, narrowed from $6.8 million a year earlier, on revenue of $19.2 million. Direct costs fell 39% to $10.4 million, and revenue less direct costs rose to $8.8 million from $4.8 million.
The company ended March with $8.9 million in cash and $1.9 million in digital assets. It still owes $18.9 million on its equipment purchases, which it plans to cover with operating cash flow and a $26 million term-loan facility from DCG at 11% interest, maturing in June 2028.