Fortitude Mining Holdings, the Zcash ($ZEC) mining platform owned by Barry Silbert’s Digital Currency Group (DCG), has disclosed a set of disappointing financials that reveal tons of debt, years of losses, and $ZEC as a minority of revenue.
The disclosure, which also reveals a highly adjusted EBITDA that disregards $32 million of depreciation, paints a very different picture to a pitch deck published by Fortitude last month.
The deck, which is listed on the company’s website, proudly claims that as of a conveniently selected period of the 2025 fiscal year, Fortitude was debt-free.
However, compelled by SEC rules to disclose more up-to-date financials pursuant to its all-stock merger with publicly-traded HeartSciences Inc., the company has admitted that it signed a $26 million credit facility on June 1 and drew over $8.3 million of actual debt from that facility before the deck was published on June 23.
The disappointment doesn’t end there.
The pitch deck also declared Fortitude Mining “a Zcash ecosystem leader.” However, filings show a $12.6 million net loss for 2025. That loss added to a $14.3 million in 2024.
Worse, net losses continued through March 2026, with Q1 draining another $4.6 million.
Even its self-characterization as a Zcash “leader” is questionable given its actual revenue split. Of the company’s $89 million in mining revenue for 2025, 65% or $58 million came not from mining $ZEC but from mining $BTC.
Indeed, only 28% of its 2025 revenue came from mining $ZEC. $BTC and other crypto assets generated 72%.
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Adjusted, very adjusted, EBITDA
Fortitude’s deck viewed its net losses through rose-tinted glasses, touting ~$20 million of “adjusted EBITDA.”
Its marketers produced that adjusted figure mainly by adding back approximately $32 million of depreciation onto its $12.6 million net loss for 2025.
Unfortunately, in the mining industry, depreciation invariably occurs as rigs physically wear out from heat, corrosion, grinding, and technological obsolescence.
Depreciation isn’t a mere footnote for a crypto mining company. It’s a true, inescapable cost of production.
Other disclosures brought no relief. Fortitude warned, “The Company depends on a single supplier of Zcash miners, any disruption, could adversely affect the company’s business.”
It also posted accelerating net losses and overhead expenses.
Zcash has been rallying while Fortitude added losses
$ZEC has been one of crypto’s best-performing altcoins, surging 1,400% over the past three years, including 1,000% over the past 12 months.
Somehow, Fortitude has managed to lose money since 2024.
Annual statements caution that the indebted company “may not be able to timely secure additional debt or equity financings on favorable terms, if at all.” The same statements show Fortitude closed the year with less than $10 million of cash.
HeartSciences, a Texas seller of AI-powered heart testing software, saw its shares jump 57% on the June 23 merger news. However, pro forma disclosures admit that HeartSciences earned just $4,000 of revenue for the 12 months ending April 30, 2026 while carrying tens of millions of dollars in accumulated deficit.
HeartSciences ended after-hours trading yesterday at $2.45 per share, 34% below its June 23 high. It has traded steadily lower throughout July.
If the deal closes, the merged business will trade under a new ticker symbol, “TUDE,” and a new name, Fortitude Mining Group.
Silbert’s DCG is set to hold the vast majority of the company’s post-merger equity, with everyone else splitting the rest.
The morning the deck landed, Silbert posted, “Great day for Zcash.” He told followers the venture was just getting started.
