Fortitude Mining Holdings, the Zcash ($ZEC) mining platform owned by Barry Silbert’s Digital Forex Group (DCG), has disclosed a set of disappointing financials that reveal tons of debt, years of losses, and $ZEC as a minority of income.
The disclosure, which additionally reveals a extremely adjusted EBITDA that disregards $32 million of depreciation, paints a really totally different image to a pitch deck revealed by Fortitude final month.
The deck, which is listed on the corporate’s web site, proudly claims that as of a conveniently chosen interval of the 2025 fiscal 12 months, Fortitude was debt-free.
Nonetheless, compelled by SEC guidelines to reveal extra up-to-date financials pursuant to its all-stock merger with publicly-traded HeartSciences Inc., the corporate has admitted that it signed a $26 million credit score facility on June 1 and drew over $8.3 million of precise debt from that facility earlier than the deck was revealed on June 23.
The frustration doesn’t finish there.
The pitch deck additionally declared Fortitude Mining “a Zcash ecosystem chief.” Nonetheless, filings present a $12.6 million web loss for 2025. That loss added to a $14.3 million in 2024.
Worse, web losses continued via March 2026, with Q1 draining one other $4.6 million.
Even its self-characterization as a Zcash “chief” is questionable given its precise income cut up. Of the corporate’s $89 million in mining income for 2025, 65% or $58 million got here not from mining $ZEC however from mining $BTC.
Certainly, solely 28% of its 2025 income got here from mining $ZEC. $BTC and different crypto belongings generated 72%.
Arkham accused of misrepresenting Zcash knowledge in viral submit
Adjusted, very adjusted, EBITDA
Fortitude’s deck seen its web losses via rose-tinted glasses, touting ~$20 million of “adjusted EBITDA.”
Its entrepreneurs produced that adjusted determine primarily by including again roughly $32 million of depreciation onto its $12.6 million web loss for 2025.
Sadly, within the mining trade, depreciation invariably happens as rigs bodily put on out from warmth, corrosion, grinding, and technological obsolescence.
Depreciation isn’t a mere footnote for a crypto mining firm. It’s a real, inescapable price of manufacturing.
Different disclosures introduced no reduction. Fortitude warned, “The Firm is determined by a single provider of Zcash miners, any disruption, might adversely have an effect on the corporate’s enterprise.”
It additionally posted accelerating web losses and overhead bills.
Zcash has been rallying whereas Fortitude added losses
$ZEC has been certainly one of crypto’s best-performing altcoins, surging 1,400% over the previous three years, together with 1,000% over the previous 12 months.
By some means, Fortitude has managed to lose cash since 2024.
Annual statements warning that the indebted firm “might not have the ability to well timed safe extra debt or fairness financings on favorable phrases, if in any respect.” The identical statements present Fortitude closed the 12 months with lower than $10 million of money.
HeartSciences, a Texas vendor of AI-powered coronary heart testing software program, noticed its shares soar 57% on the June 23 merger information. Nonetheless, professional forma disclosures admit that HeartSciences earned simply $4,000 of income for the 12 months ending April 30, 2026 whereas carrying tens of tens of millions of {dollars} in collected deficit.
HeartSciences ended after-hours buying and selling yesterday at $2.45 per share, 34% under its June 23 excessive. It has traded steadily decrease all through July.
If the deal closes, the merged enterprise will commerce below a brand new ticker image, “TUDE,” and a brand new identify, Fortitude Mining Group.
Silbert’s DCG is ready to carry the overwhelming majority of the corporate’s post-merger fairness, with everybody else splitting the remainder.
The morning the deck landed, Silbert posted, “Nice day for Zcash.” He instructed followers the enterprise was simply getting began.
