DCG today provided its Fortitude Mining unit with a $24 million credit facility, raising its total额度 from $26 million to $50 million.
But one detail is worth calling out separately—
DCG chose to lend in ZEC rather than USD. After Fortitude receives the ZEC, it plans to “sell all of it through open market transactions” to convert it into dollars to buy mining rigs.
Put simply: the $31 million worth of ZEC sell pressure will enter the market in batches.
This isn’t a positive signal; it’s a preview of selling pressure.
But there’s another side to the story. Fortitude is buying 9,000 mining rigs to expand production, which suggests they are betting that ZEC has long-term value—otherwise, borrowing to expand would make no sense.
Right now, Fortitude’s ZEC mining cost is about $40 per coin. As the number of mining rigs increases, the hashrate will rise.
This year, ZEC has climbed from $42 to over $1,500 at its peak. At this point in time, Fortitude’s parent company DCG chose to lend using ZEC rather than dollars—DCG is unwilling to spend cash and would rather spend ZEC.
This indicates that DCG has made a judgment about the $31 million worth of ZEC: swapping ZEC for assets is more cost-effective than using cash.
The sell pressure is real. But DCG also believes ZEC is worth using to buy infrastructure—and that belief is also real.
$ZEC
#fortitude信贷额度增至5000万美元
But one detail is worth calling out separately—
DCG chose to lend in ZEC rather than USD. After Fortitude receives the ZEC, it plans to “sell all of it through open market transactions” to convert it into dollars to buy mining rigs.
Put simply: the $31 million worth of ZEC sell pressure will enter the market in batches.
This isn’t a positive signal; it’s a preview of selling pressure.
But there’s another side to the story. Fortitude is buying 9,000 mining rigs to expand production, which suggests they are betting that ZEC has long-term value—otherwise, borrowing to expand would make no sense.
Right now, Fortitude’s ZEC mining cost is about $40 per coin. As the number of mining rigs increases, the hashrate will rise.
This year, ZEC has climbed from $42 to over $1,500 at its peak. At this point in time, Fortitude’s parent company DCG chose to lend using ZEC rather than dollars—DCG is unwilling to spend cash and would rather spend ZEC.
This indicates that DCG has made a judgment about the $31 million worth of ZEC: swapping ZEC for assets is more cost-effective than using cash.
The sell pressure is real. But DCG also believes ZEC is worth using to buy infrastructure—and that belief is also real.
$ZEC
#fortitude信贷额度增至5000万美元
