Zcash Miner Plans Up to $100 Million in Equipment Access: Where Will the Deposit Come From?

Fortitude plans to secure priority access to up to $100 million in next-generation equipment from BITMAIN to expand its Zcash mining operations.

Fortitude Mining Holdings announced Tuesday that it had signed a non-binding letter of intent with BITMAIN for Zcash mining devices that are not yet commercially available. The agreement provides for priority access to up to $100 million in equipment.

The company says it currently operates approximately 4.7 GSol/s of mining capacity and has more than 60 MW of contracted power capacity across seven facilities. In July, Fortitude also agreed to purchase 9,000 Antminer Z15 Pro devices for approximately $31.5 million. The order is expected to add 7.56 GSol/s of capacity to the company.

How will Fortitude finance its new equipment plan?

A $20 million refundable deposit is required for the priority allocation. Fortitude plans to borrow $20 million this week, with its parent company, Digital Currency Group (DCG), expected to finance the borrowing in ZEC.

DCG increased Fortitude’s credit line from $50 million to $70 million. According to the announcement, approximately $42.7 million in borrowing capacity remains available.