Fortitude Mining has entered into a letter of intent with BITMAIN providing priority allocation for next-generation Zcash mining equipment through a potential purchase commitment of up to $100 million.
The commitment is indicative and non-binding and remains subject to execution of a definitive purchase agreement once BITMAIN releases final equipment specifications and pricing.
The arrangement allows Fortitude to increase the size of the contemplated purchase, subject to BITMAIN’s approval and equipment availability, or reduce it following the official launch of the new hardware.
Fortitude expects BITMAIN’s next-generation Zcash mining equipment to begin shipping during the second quarter of 2027.
The company currently operates approximately 4.7 GSol/s of Equihash hashrate and has more than 60 MW of contracted power capacity across seven locations in South Dakota, Nebraska, Texas and New York.
Fortitude has also previously ordered 9,000 BITMAIN ANTMINER Z15 Pro miners.
The latest agreement is designed to give the company early access to another generation of equipment as it seeks to increase its Zcash mining capacity.
To support the potential purchase, Fortitude also expanded its credit facility with parent company Digital Currency Group from $50 million to $70 million.
The facility now provides approximately $42.7 million of remaining borrowing capacity before a planned new draw.
The BITMAIN letter of intent requires Fortitude to make a refundable deposit equal to 20% of the contemplated commitment, or $20 million.
Fortitude plans to draw that amount under the DCG credit facility, with the funding expected to be provided in ZEC and subsequently liquidated to fund the deposit.
After the planned $20 million borrowing, Fortitude expects to have borrowed approximately $47.3 million under the facility and have approximately $22.7 million of remaining capacity.
DCG may also provide additional ZEC financing outside the upsized facility to support Fortitude’s capital requirements and growth initiatives through fiscal 2027.
Fortitude is separately progressing with its previously announced proposed business combination with HeartSciences.
If completed, that transaction is expected to make Fortitude a publicly traded company and provide additional access to the capital markets as it expands its Zcash mining and energy infrastructure platform.
KEY QUOTES:
“Fortitude’s vision is to be the largest vertically-integrated Zcash mining platform. Securing a priority supply allocation for BITMAIN’s next-generation equipment, alongside our existing operating base and previously announced Z15 Pro order, positions Fortitude to expand its fleet with industry-leading hardware as it becomes available. We believe there is a significant opportunity to invest in Zcash mining infrastructure today, and Fortitude is well positioned to lead that buildout.”
Jaime Leverton, CEO of Fortitude
“Fortitude is one of the first Zcash mining companies to publicly announce an LOI for our next-generation Zcash mining equipment at this scale, making this an important milestone for both companies and for the Zcash mining ecosystem. This relationship brings together BITMAIN’s leadership in mining technology and engineering with Fortitude’s vertically integrated power, infrastructure and operating capabilities. We see a strong opportunity to build a long-term relationship with Fortitude as the Zcash mining ecosystem continues to scale.”
BITMAIN Executive
