Fortitude Mining Holdings has entered a letter of intent with Bitmain Technologies that grants the company priority supply allocation for the manufacturer's next-generation Zcash mining equipment. The nonbinding commitment covers potential purchases of up to $100 million of the unreleased machines.

Deliveries are expected to begin in the second quarter of 2027, once final specifications and pricing are set. The arrangement remains subject to a binding purchase agreement after those details are released and allows flexibility to adjust the order size upward or downward, depending on availability and Bitmain's approval.

Deposit and Financing Arrangements

The letter of intent requires a refundable deposit equal to 20 percent of the commitment amount, or $20 million. Fortitude plans to draw that sum this week from its credit facility with parent company Digital Currency Group. DCG is expected to provide the funds in Zcash, which Fortitude can then convert through market transactions.

In connection with the deal, Fortitude increased the size of its credit facility with DCG from $50 million to $70 million. After the planned draw, the company will retain substantial remaining borrowing capacity under the expanded facility.

Current Operations and Prior Orders

Fortitude currently runs approximately 4.7 GSol/s of Equihash hashrate. It holds more than 60 MW of contracted power capacity spread across seven sites in South Dakota, Nebraska, Texas, and New York.

In July the company agreed to purchase 9,000 Bitmain Antminer Z15 Pro machines for roughly $31.5 million. That order is expected to add 7.56 GSol/s of capacity once the units are delivered.

Fortitude was spun out of Digital Currency Group's Foundry self-mining operation in January 2025. Since then it has concentrated on building a vertically integrated venture-mining platform centered on Zcash.

Company leadership has described the goal of becoming the largest vertically integrated Zcash mining platform and views the current period as an opportunity to expand infrastructure for the network.

Zcash traded above $1,370 on the day of the announcement, according to market data.