Fortitude Mining Holdings has brought its first greenfield mining facility online, marking another step in its strategy to build one of the largest vertically integrated mining platforms centered on Zcash (ZEC).
The newly energized 12-megawatt (MW) facility in Grand Island, Nebraska, increases Fortitude’s owned and contracted power portfolio to more than 60 MW across seven sites located in Nebraska, South Dakota, Texas, and New York. The company says the expansion strengthens its ability to mine Zcash at lower operating costs while creating additional revenue opportunities through power management and grid participation.
The announcement follows Fortitude’s recently disclosed agreement to merge with HeartSciences Inc. (Nasdaq: HSCS), a transaction expected to take the Zcash-focused mining company public during the second half of 2026.
New Facility Aims to Lower Zcash Mining Costs
According to Fortitude, the Grand Island facility represents its first fully self-developed mining site, showcasing the company’s ability to design, construct, and energize digital asset infrastructure without relying on third-party hosting providers.
The company estimates the new facility will operate at electricity costs of approximately $0.045 per kilowatt-hour, significantly improving mining economics. Assuming successful deployment of mining equipment and stable network conditions, Fortitude expects its direct cash mining cost for Zcash to decline from roughly $70 per ZEC toward approximately $40 per ZEC.
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Management believes owning both power infrastructure and mining operations provides greater control over operating expenses while reducing dependence on external hosting providers. The vertically integrated approach also allows Fortitude to participate in demand response programs, where electricity consumption can be reduced during periods of peak grid demand.
Chief Executive Officer Andrea Childs described the project as a major milestone in the company’s long-term infrastructure strategy, noting that months of engineering and construction have resulted in reliable capacity capable of supporting expansion across multiple proof-of-work blockchain networks.
Chief Financial Officer Erik Ellingson added that building facilities internally establishes a foundation for future growth as the company continues pursuing additional owned power assets alongside strategic acquisitions.
Vertically Integrated Strategy Centers on Zcash
Unlike many cryptocurrency mining companies that primarily focus on Bitcoin, Fortitude has positioned Zcash as the foundation of its mining strategy while remaining open to opportunities across other proof-of-work networks.
The Grand Island facility sits between two solar generation sites and adjacent to a substation with available capacity, allowing the company to utilize underused electricity infrastructure. During periods of high local electricity demand, the facility is designed to reduce power consumption, helping ease pressure on the grid while maintaining operational flexibility.
Officials from the City of Grand Island said the mining operation offers several advantages, including its ability to operate with a consistent electrical load while remaining interruptible when utilities require additional capacity. They also noted the facility is not expected to increase water usage or generate significant additional noise for nearby properties.
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The latest expansion comes as institutional interest in digital asset mining continues evolving beyond Bitcoin. While Zcash remains one of the largest privacy-focused cryptocurrencies, Fortitude is positioning itself to benefit from long-term opportunities by combining mining operations with ownership of low-cost energy infrastructure.
The company believes this strategy provides multiple revenue streams beyond mining rewards alone, including energy optimization and future expansion into additional proof-of-work ecosystems. If Fortitude successfully executes its growth plans and completes its proposed public listing, the new Nebraska facility could become an important building block in its ambition to establish one of the industry’s largest vertically integrated Zcash mining operations.
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