Fortitude Mining has signed a non-binding agreement for up to $100 million of Bitmain's next-generation zcash mining hardware, the company said. The deal gives Fortitude priority access to the machines ahead of an expected 2027 rollout, according to a person familiar with the matter.
Fortitude, which is backed by Digital Currency Group, is preparing to make a bigger bet on zcash (ZEC), the privacy-focused cryptocurrency that has quietly become a focus for miners looking to diversify away from bitcoin. The agreement, while not yet binding, positions Fortitude to secure supply of hardware that won't be widely available for at least another year.
What the agreement covers
The non-binding deal covers up to $100 million worth of Bitmain's next-generation zcash mining rigs. Fortitude would get priority access to the hardware before the general market, according to the terms described. The machines are expected to roll out in 2027, though neither company has announced a specific launch date.
Bitmain, the world's largest manufacturer of crypto mining equipment, has not publicly detailed the specifications of its next-generation zcash miners. The company has historically dominated the bitcoin ASIC market, but its move into zcash-specific hardware signals a broader bet on alternative proof-of-work networks.
Why Fortitude is betting on zcash
Fortitude Mining's parent, Digital Currency Group, has a long history of investing in crypto infrastructure. The bet on zcash mining hardware suggests the firm sees an opportunity in a network that has largely been overshadowed by bitcoin and ethereum.
Zcash uses a mining algorithm called Equihash, which is memory-hard and designed to resist ASIC dominance. That has made it a favorite among GPU miners, but it's also attracted specialized hardware makers over the years. Bitmain's next-generation machines would likely be more efficient than current models, potentially reshaping the economics of zcash mining.
The non-binding nature of the agreement means Fortitude isn't locked into the purchase. It could walk away or renegotiate terms before the hardware ships. But the priority access clause is the real prize: in the mining industry, getting first dibs on new rigs can mean the difference between profitability and watching from the sidelines.
A 2027 timeline leaves room for changes
With the hardware not expected until 2027, there's plenty of time for the deal to shift. Bitmain hasn't confirmed a production schedule or a price per unit. Fortitude hasn't said how many machines it intends to buy or where it plans to deploy them.
The zcash network itself could look different by then. Its price, hash rate, and mining difficulty all fluctuate, and regulatory pressure on privacy coins remains a wild card. Zcash has faced delisting threats from exchanges in recent years, though it continues to trade on major platforms.
For now, the agreement is a signal that at least one major mining company is willing to commit serious capital to a non-bitcoin network. Whether others follow will depend on whether Fortitude's bet pays off — and whether Bitmain can deliver the hardware on time.
What happens next
Fortitude and Bitmain have not disclosed a deadline for converting the non-binding agreement into a binding contract. The companies also haven't said whether the deal includes any exclusivity provisions beyond priority access. A Bitmain spokesperson did not immediately respond to a request for comment. Fortitude declined to comment beyond the initial announcement.
The next concrete milestone is likely to be a product announcement from Bitmain, which would give miners a clearer picture of what they're actually buying. Until then, the deal remains a promise — a $100 million one, but a promise nonetheless.
