Zcash mining operator Fortitude Mining has expanded its operations by borrowing ZEC from its parent company, Digital Currency Group, and liquidating the coins for cash to fund infrastructure investments. On October 5, the company disclosed that it had received 5,790.4798 ZEC through a roughly $8.4 million draw and immediately sold those coins for approximately $8.3 million.
Under the amended DCG facility, ZEC-funded loans are denominated and repayable in US dollars, with their value determined at the time of transfer. This structure allows Fortitude to satisfy its repayment obligation in dollars rather than requiring the company to repurchase the same quantity of ZEC.
Fortitude also announced plans for an additional $20 million draw in ZEC, which would be liquidated to fund a refundable deposit for next-generation equipment. The company has a definitive agreement for 9,000 BITMAIN Antminer Z15 Pro units, priced at $3,499 each, totaling approximately $31.5 million. The contract scheduled 3,000 units to ship in October and 6,000 in November.
Mining Capacity and Network Impact
Each Z15 Pro has specifications of 840 KSol/s in mining work and 2,780 watts of power consumption. The initial 3,000 units represent 2.52 GSol/s of nameplate capacity and 8.34 megawatts of wall draw. All 9,000 machines would represent 7.56 GSol/s and 25.02 megawatts before additional site loads. Actual output depends on operating conditions and availability.
Separately, Fortitude has an indicative, nonbinding commitment of up to $100 million for next-generation equipment, with shipments expected to begin in the second quarter of 2027.
Economic Incentives and Reward Distribution
According to Hashrate Index's October 13 analysis using ZEC at $1,185 and electricity at 8 cents per kilowatt-hour, Z15 Pro mining generated an estimated $773 per megawatt-hour in revenue, compared to approximately $135 for efficient Bitcoin fleets.
Using updated assumptions of a ZEC price of $1,236.60, electricity at 8 cents per kilowatt-hour, and a network hashrate of 30.2 GSol/s, a Z15 Pro running continuously would be expected to earn approximately 0.04005 ZEC, or about $49.53, per day from subsidy alone. Its typical 2.78-kilowatt power consumption costs about $5.34 daily, leaving $44.19 before accounting for pool fees, hardware costs, facility expenses, and other operating expenses.
Zcash's current total block subsidy is 1.5625 ZEC per block. Miners receive 1.25 ZEC, or 80%, plus transaction fees. Under the NU6.1 funding model, 8% goes to Zcash Community Grants and 12% to coinholder-controlled funding.
Competitive Displacement
As Fortitude adds mining capacity, its machines will compete with existing miners for a share of block rewards. If additional hashrate is introduced while the network's per-block subsidy remains unchanged, existing miners' expected coin output falls as their share of total work shrinks.
Modeling shows that if the 3,000 Z15 Pros currently scheduled to ship are added to the network, an unchanged existing miner's expected subsidy output would fall approximately 7.7% below baseline. If all 9,000 units join the network, the reduction would be approximately 20% below baseline, assuming no other entries or exits.
Fortitude states that it currently sells or monetizes all digital assets it mines. As its fleet expands, it will receive and monetize rewards that would otherwise have gone to competing miners.
