Fortitude locks in preferential supply rights to Bitmain's next-generation Zcash mining machine in

Fortitude signs a letter of intent with Bitmain: committing up to US$100 million to purchase next-generation Zcash mining equipment.

Fortitude announced on October 5 that its subsidiary has signed a non-binding letter of intent (LOI) with Bitmain to prioritize the allocation of next-generation Zcash mining equipment. The indicative purchase commitment contained in the letter of intent amounts to US$100 million. Since the relevant equipment has not yet been officially commercialized, this agreement is essentially a reservation for future production capacity rather than a completed hardware purchase.

Intentional arrangement for preferential access to unreleased equipment

According to Fortitude's announcement, the core of this arrangement is to obtain preferential access to Bitmain's next-generation Zcash miners. The announcement clearly stated that the maximum amount of US$100 million is an indicative commitment under the letter of intent and is not a final order.

Equipment is expected to be shipped in the second quarter of 2027. However, this timetable still depends on the announcement of Bitmain's final specifications (specifications) and pricing. Orders cannot be advanced until both parties sign a legally binding purchase agreement. As Investing.com reported citing the Fortitude announcement, this sequencing is crucial because the disclosure terms do not specify the specific models and their ultimate unit economic benefits. Currently, the letter of intent only establishes Fortitude's expected position in the hardware allocation process that Bitmain has not yet launched to market.

US$20 million refundable margin linked to DCG financing

The letter of intent requires the payment of a refundable bond equivalent to 20% of the proposed commitment amount, or US$20 million. Fortitude said Digital Currency Group (DCG) will fund the planned withdrawal by withdrawing ZEC tokens, which will then liquidate ZEC to provide margin.

This arrangement links immediate payment needs to the lending relationship between Fortitude and DCG, rather than a margin described as a cash payment. This also means that the planned ZEC withdrawal and subsequent liquidation become part of the disclosure mechanism to meet the 20% margin requirement, rather than the final purchase payment.

Meanwhile, Fortitude increased its credit line with DCG from US$50 million to US$70 million. According to The Block, after the increase, the company's remaining borrowing capacity is approximately US$42.7 million.

Although the expansion of the credit line is less than the maximum equipment commitment amount on the headline, and the margin disclosed is limited to one-tenth of that amount, the final size of any purchase still depends on the final agreement and the terms Bitmain sets after the new equipment specifications and prices are disclosed.

The proposed order expands the previous deployment plan of 9,000 Z15 Pro units

This proposed future allocation follows another agreement in July, when Fortitude purchased 9,000 Bitmain Antminer Z15 Pro units. The unit price of the order is US$3,499 per unit, and the total price is approximately US$31.5 million.

Fortitude said the purchase of the Z15 Pro is expected to increase Equihash computing power by 7.56 GSol/s. These are equipment for which models have been confirmed and unit prices have been announced. They are in contrast to the unreleased equipment involved in previous letters of intent, which are left to the final determination of model specifications and prices.

The July purchase provided the clearest disclosure benchmark for the company's existing Zcash-focused construction. Data released by NASDAQ's Business Wire shows that the expected Equihash increment for early orders is 7.56 GSol/s, while comparable computing power data has not yet been disclosed for the proposed next-generation allocation.

If a binding deal is reached, shipments in the second quarter of 2027 are expected to be the next scheduled delivery milestone for Fortitude's hardware expansion. Before Bitmain releases the remaining specifications and prices, the $100 million commitment represents only an indication of expected procurement capabilities, rather than a fixed equipment deployment plan.