DCG Unit Fortitude Acquires 12.5-MW Nebraska Mining Facility to Expand Zcash Capacity

Digital Currency Group's Zcash mining subsidiary, Fortitude Mining Holdings, is expanding its operations with another mining facility in Nebraska.

Fortitude has completed the acquisition of a 12.5-megawatt mining facility in Prosser, Nebraska, The Block reported on August 4. The effective outlay fell to about $4.7 million from $6.25 million after subtracting $9.85 million in hosting deposit credits and $465,500 in proceeds from the sale of about 1,400 mining machines. The company financed the deal entirely with cash on hand.

The Prosser facility is Fortitude's third site in Nebraska. The acquisition brings its self-powered portfolio to more than 60 megawatts across seven sites in South Dakota, Nebraska, Texas and New York. The assets acquired include land, buildings and a 67-kilovolt substation. The deal also includes a 90-day construction warranty.

Chief Executive Officer Andrea Childs said the Prosser acquisition marks an important step in expanding the company's self-operated portfolio. Fortitude is building a vertically integrated platform that combines acquisitions with internal development to maximize the value of its megawatt holdings. Chief Financial Officer Eric Ellingson added that the facility was already classified as a revenue-generating operating asset when the acquisition closed.

Power costs at the Prosser facility are about $0.045 per kilowatt-hour, which Fortitude says could lower its Zcash mining cost to about $40 per ZEC.

Fortitude said last month that it planned to add 9,000 Bitmain Antminer Z15 Pro miners for about $31.5 million. Once deployed, the machines would increase its Zcash mining capacity by 145%. Fortitude is also pursuing a Nasdaq listing through a merger with healthcare company HeartSciences, with the ticker planned as TUDE.