Digital Currency Group (DCG)-backed Zcash (ZEC) mining firm Fortitude Mining has signed a merger agreement with AI healthcare technology company HeartSciences through an all-stock swap, the companies announced on March 23. The deal is expected to close in the second half of 2026. Upon completion, the combined entity will operate under the Fortitude brand and management, and if approved by Nasdaq, will trade on the Nasdaq Capital Market under the ticker "TUDE."
Merger Details and Ownership Structure
Under the agreement, DCG, Fortitude's sole shareholder, will own approximately 95% of the post-merger company on a fully diluted basis. Fortitude CEO Andrea Childs stated that the merger is not aimed at operational synergies but rather at raising capital for future growth. HeartSciences CEO Andrew Simpson will continue to lead the healthcare business unit after the transaction, focusing on advancing AI-powered electrocardiogram (ECG) technology.
Fortitude's Venture Mining Model and ZEC Outlook
Fortitude operates under a "venture mining" model, which involves holding infrastructure to support early-stage protocols it believes in. DCG founder and CEO Barry Silbert highlighted Zcash's appeal, noting that it combines Bitcoin's scarcity and proof-of-work discipline with privacy and security features that are becoming increasingly important as financial systems digitize. In February, Silbert predicted that 5% to 10% of capital allocated to Bitcoin would flow into privacy-focused cryptocurrencies over the next few years.
Fortitude began mining ZEC in 2019. As of May 31, 2026, the company had expanded its annualized production to 157,000 ZEC (approximately 366 ZEC per day). It plans to continue accumulating ZEC for the long term. Zcash, launched in 2016 based on Bitcoin's codebase, inherits Bitcoin's 21 million supply cap while adding privacy features through its shielded transaction pool. Despite a recent vulnerability discovery that caused a temporary price drop, ZEC has risen about 910% over the past year.