Fortitude Mining Holdings, Zcash ($ZEC) The mining platform owned by Barry Silbert’s Digital Currency Group (DCG) has suffered significant debt, years of losses, $ZEC As a small portion of your income.
The disclosure also reveals highly adjusted EBITDA that ignores depreciation and amortization of $32 million, painting a very different picture than Fortitude’s offering document released last month.
Materials posted on the company’s website proudly claim that as of the conveniently chosen period of fiscal year 2025, Fortitude is debt-free.
However, forced by SEC rules to disclose more up-to-date financial information following its all-stock merger with publicly traded Heart Sciences, the company acknowledged on June 1 that it had entered into a $26 million credit facility. Withdrawn more than $8.3 million in actual debt It was from that property before the deck opened to the public on June 23rd.
That’s not the only disappointment.
The pitch deck also declared Fortitude Mining to be a “leader in the Zcash ecosystem.” However, the filing shows a net loss of $12.6 million in 2025, which will be added to $14.3 million in 2024.
To make matters worse, the net loss continued through March 2026, with an additional $4.6 million drained in the first quarter.
Even Zcash’s self-assessment as a “leader” is questionable given the actual revenue distribution. Of the company’s 2025 mining revenue of $89 million, 65% or $58 million was earned. not from the mines $ZEC But from the mine $BTC.
surely, Only 28% Revenue from mining in 2025 $ZEC. $BTC Other crypto assets generated 72%.
Arkham accused of misrepresenting Zcash data in viral post
Adjusted, highly adjusted EBITDA
Fortitude’s materials put rose-colored glasses on the net loss and touted “adjusted EBITDA” of about $20 million.
The company’s marketers calculated the adjusted figure primarily by adding back about $32 million in depreciation and amortization to its 2025 net loss of $12.6 million.
Unfortunately, depreciation always occurs in the mining industry as rigs physically wear out due to heat, corrosion, grinding, and technology aging.
Depreciation is more than just a footnote for crypto mining companies. This is just an unavoidable production cost.
Other disclosures provided no relief. Fortitude warned that “we rely on a single supplier of Zcash miners and any disruption could negatively impact its business.”
I also posted this Accelerating increase in net losses and overhead expenses.
Zcash is recovering, but Fortitude is adding to its losses
$ZEC is one of the best-performing altcoins in cryptocurrencies, soaring 1,400% in the past three years, including 1,000% in the past 12 months.
For some reason, Fortitude has been losing money since 2024.
The annual report warns that debt-laden companies “may not be able to secure additional debt or equity financing on favorable terms in a timely manner.” The same statement shows Fortitude ended the year with less than $10 million in cash.
Heart Sciences, a Texas-based company that sells heart testing software that utilizes AI, saw its stock price rise 57% on June 23 on news of the merger. However, in pro forma disclosures, HeartScience acknowledges that it only made a small profit. $4,000 in revenue in 12 months It will end on April 30, 2026, with an accumulated deficit of tens of millions of dollars.
Heart Sciences closed yesterday in after-hours trading at $2.45 per share, 34% below its June 23 high. It has been steadily declining throughout July.
If the transaction goes through, the combined business will trade under the new ticker symbol “TUDE” and a new company name, Fortitude Mining Group.
Silbert’s DCG will hold the majority of the combined company’s stock, with everyone else splitting up the rest.
“Great day for Zcash,” Silbert posted on the morning the deck touched down. He told his followers that the business is still in its infancy.
