Fortitude Mining Holdings, the Zcash (ZEC) mining company owned by Barry Silbert’s Digital Currency Group (DCG), disclosed a weaker financial picture in merger filings than the one presented in a pitch deck published last month. The filings show debt, multi-year losses, and a revenue base in which ZEC accounted for only a minority share.
The disclosures were made as part of Fortitude’s planned all-stock merger with publicly traded HeartSciences Inc. In a deck posted on its website, Fortitude said that, during a selected period in fiscal 2025, it was debt-free.
Its SEC-related filings told a different story. Fortitude said it signed a $26 million credit facility on June 1 and had drawn more than $8.3 million from that facility before the deck was published on June 23.
Losses continued as BTC made up most of mining revenue
The company’s materials also described Fortitude Mining as “a Zcash ecosystem leader.” The filings show a $12.6 million net loss for 2025, on top of a $14.3 million net loss in 2024. Losses continued into 2026, with another $4.6 million drained in the first quarter through March 2026.
The revenue split raises more questions about that positioning. Of Fortitude’s $89 million in mining revenue for 2025, 65%, or $58 million, came from mining BTC rather than ZEC. Only 28% of 2025 revenue came from ZEC mining, while BTC and other crypto assets accounted for 72%.
Adjusted EBITDA excluded about $32 million of depreciation
Fortitude’s deck promoted roughly $20 million in adjusted EBITDA. According to the filing details, that figure was produced largely by adding back about $32 million in depreciation to the company’s $12.6 million net loss for 2025.
For a mining business, depreciation is not a minor accounting item. Mining rigs wear down through heat, corrosion, mechanical stress, and technological obsolescence, making depreciation part of the real cost base rather than a side note.
Other risk disclosures were also negative. Fortitude warned, “The Company depends on a single supplier of Zcash miners, any disruption, could adversely affect the company’s business.” The filings also showed rising net losses and overhead expenses.
ZEC surged, but Fortitude still lost money
ZEC has been one of the stronger-performing altcoins in crypto. The report said the token rose 1,400% over the past three years, including 1,000% in the last 12 months. Even with that backdrop, Fortitude has continued to lose money since 2024.
Annual statements said the indebted company “may not be able to timely secure additional debt or equity financings on favorable terms, if at all.” Those same statements showed Fortitude ended the year with less than $10 million in cash.
HeartSciences posted only $4,000 in 12-month revenue
HeartSciences, the merger partner, is a Texas seller of AI-powered heart testing software. Its shares jumped 57% on the June 23 merger announcement.
Pro forma disclosures showed that HeartSciences generated just $4,000 in revenue for the 12 months ended April 30, 2026, while carrying tens of millions of dollars in accumulated deficit. The stock ended after-hours trading yesterday at $2.45 per share, down 34% from its June 23 high, and it has trended lower throughout July.
Merged company would trade as TUDE
If the transaction closes, the combined company will adopt the name Fortitude Mining Group and trade under the ticker TUDE.
Filings said Silbert’s DCG is set to hold the vast majority of the post-merger equity, with the remainder split among other holders.
On the morning the deck was published, Silbert wrote, “Great day for Zcash.” He also told followers that the venture was “just getting started.”