Nikolas Sargeant
TL;DR
-
Fortitude Mining has signed a letter of intent with BITMAIN for priority access to next-generation Zcash mining equipment.
-
The agreement includes a nonbinding purchase commitment of up to $100 million for the unreleased hardware.
-
Fortitude plans to fund a $20 million refundable deposit through borrowing from parent company Digital Currency Group.
-
DCG has increased Fortitude’s credit facility from $50 million to $70 million.
Fortitude Mining Holdings has signed a letter of intent with BITMAIN Technologies to secure priority access to the manufacturer’s next-generation Zcash mining equipment.
Announced Tuesday, the arrangement includes a nonbinding commitment to purchase up to $100 million of the unreleased hardware. It marks another step in Fortitude’s expansion into Zcash mining following a substantial equipment order earlier this year.
CEO Jaime Leverton said the priority allocation, combined with Fortitude’s existing operations and previously announced Antminer Z15 Pro purchase, would position the company to expand its fleet as new hardware becomes available.
BITMAIN Agreement Requires a $20 Million Refundable Deposit
The letter of intent requires a refundable deposit equal to 20% of the proposed commitment, or $20 million.
Fortitude plans to draw that amount from its credit facility this week, with parent company Digital Currency Group expected to fund the borrowing in ZEC.
The purchase commitment remains nonbinding. The announcement therefore outlines Fortitude’s intended investment and priority supply arrangement rather than a completed $100 million equipment purchase.
The company did not provide specifications or a release date for BITMAIN’s next-generation machines in the supplied statement.
Fortitude said its credit facility with DCG has increased to $70 million from $50 million. According to the statement, approximately $42.7 million in borrowing capacity remained available. The expanded facility provides additional financing flexibility as Fortitude prepares the deposit and pursues its mining expansion.
Fortitude was spun out of DCG’s Foundry self-mining operation in January 2025. It has since broadened its strategy into a venture-mining platform anchored in Zcash.
New Hardware Plans Follow $31.5 Million Z15 Pro Order
Fortitude currently operates approximately 4.7 GSol/s of Equihash hashrate, according to the company.
It also has more than 60 megawatts of contracted power capacity across seven sites in South Dakota, Nebraska, Texas, and New York.
In July, Fortitude agreed to purchase 9,000 BITMAIN Antminer Z15 Pro machines for approximately $31.5 million. That order represents an additional 7.56 GSol/s of mining capacity.
The latest agreement seeks access to a subsequent generation of equipment, extending Fortitude’s hardware expansion plans beyond the earlier order.
Zcash traded above $1,320 on Wednesday, down 0.6% over 24 hours. Fortitude’s planned investment reflects its continued confidence in the asset. DCG founder Barry Silbert has previously argued that Zcash could eventually reach a market capitalization equivalent to 5% to 10% of Bitcoin’s.
That projection remains an investment thesis rather than an established outcome. Fortitude’s immediate plans center on securing equipment access, funding the required deposit, and expanding its mining fleet as hardware becomes available.
