Fortitude Mining Holdings, a mining company owned by Barry Silbert's Digital Currency Group (DCG) that mines the anonymous cryptocurrency Zcash, has encountered significant debt obligations and multi-million dollar losses.
In June 2026, Fortitude published investor materials reporting no debt for a specific period in the 2025 fiscal year. However, according to a Form 8-K filed on the U.S. Securities and Exchange Commission (SEC) website, the company had signed a $26 million credit agreement on June 1, with over $8.3 million of that debt raised prior to the publication of the June prospectus.
Fortitude's positioning as the unequivocal leader in Zcash ($ZEC) mining is also called into question upon analyzing its revenue structure. It is known that out of $89 million in total mining revenue in 2025, only 28% came from mining $ZEC. The overwhelming majority of revenue, 65% or $58 million, came from Bitcoin (BTC) mining.
Notably, even an impressive 1000% growth in $ZEC over the past 12 months and 1400% growth over three years did not minimize Fortitude's losses. In 2024, the net loss was $14.3 million, in 2025 it was $12.6 million, and in the first quarter of 2026, losses reached $4.6 million.
To soften the negative tone in their presentation, Fortitude's marketers emphasized an adjusted EBITDA of $20 million. This figure was achieved via a questionable method: approximately $32 million in depreciation charges were added to the net loss. In the mining industry, depreciation is not a paper formality; it represents real costs associated with equipment wear and tear due to overheating, corrosion, and technological obsolescence.
Certain risks are also posed by the chosen merger partner, Texas-based AI-based software developer HeartSciences Inc. After the deal announcement on June 23, HeartSciences shares rose by 57%.
However, according to documents filed with the SEC, for the 12 months ended April 30, 2026, HeartSciences' revenue was only $4,000 despite a huge accumulated deficit. Consequently, the company's stock price rapidly declined, falling 34% from its June highs and settling in the range of $2.34–2.45 per share. Upon completion of the deal, the combined company is expected to trade under the ticker "TUDE," with DCG retaining an absolute majority of the shares.
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