Fortitude Secures Priority BITMAIN Supply for Next-Gen Zcash Miners, Upsizes DCG Facility to $70M
HSCS has more than doubled off its 52-week low of $1.63.
Summary
Fortitude Mining, the company merging into HeartSciences, signed a non-binding LOI with BITMAIN for priority allocation of next-generation Zcash mining equipment, with an indicative $100 million purchase commitment. The equipment is not yet commercially released and is expected to ship in Q2 2027. To fund the required $20 million refundable deposit, Fortitude is drawing on its DCG credit facility, which was just upsized from $50 million to $70 million. The draw will be funded in ZEC and liquidated to cash. This follows the previously announced 9,000-unit Z15 Pro order and strengthens Fortitude's position as a leading Zcash miner. The deal is contingent on final specs and pricing, and the purchase amount can be scaled up or down. For HeartSciences shareholders, this adds tangible growth commitments to the pending merger, though the transaction remains subject to shareholder approval and Nasdaq listing requirements.
Updates
· SEC DEFA14A — Fortitude plans to draw the $20 million deposit this week, funded by DCG in ZEC and liquidated to cash; after the draw, it will have borrowed about $47.3 million under the facility, leaving about $22.7 million of borrowing capacity.
- Deposit Draw — Fortitude drew approximately $8.4 million last week in 5,790.4798 ZEC, liquidated for $8.3 million.
- Borrowing Capacity — Fortitude has approximately $42.7 million of remaining borrowing capacity under the DCG credit facility. Fortitude expects any remaining $22.7 million commitment from DCG would be funded in ZEC.
- ZEC Funding — The DCG credit facility amendment allows DCG to fund loans in ZEC, denominated and repayable in USD. DCG may provide additional ZEC funding for Fortitude's operations and growth through FY 2027. DCG's ZEC loans are denominated and repayable in U.S. dollars, valued at the time of transfer pursuant to the terms of the DCG Credit Facility.
- Purchase Scaling — The LOI counterparty is BITMAIN Technologies Delaware Limited. Scaling up the purchase commitment is subject to availability and BITMAIN's consent.
All 8 details
- The LOI counterparty is BITMAIN Technologies Delaware Limited.
- Scaling up the purchase commitment is subject to availability and BITMAIN's consent.
- Fortitude has approximately $42.7 million of remaining borrowing capacity under the DCG credit facility.
- Fortitude drew approximately $8.4 million last week in 5,790.4798 ZEC, liquidated for $8.3 million.
- The DCG credit facility amendment allows DCG to fund loans in ZEC, denominated and repayable in USD.
- Fortitude expects any remaining $22.7 million commitment from DCG would be funded in ZEC.
- DCG may provide additional ZEC funding for Fortitude's operations and growth through FY 2027.
- DCG's ZEC loans are denominated and repayable in U.S. dollars, valued at the time of transfer pursuant to the terms of the DCG Credit Facility.
At the time of this announcement, HSCS was trading at $4.38 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $21.1M. The 52-week trading range was $1.63 to $5.25. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.