Fortitude sold $8.3 million in borrowed Zcash to fund its mining expansion
Fortitude’s dollar-repayable ZEC borrowing can finance expansion through coin sales, while additional machines compete for existing block rewards. Read the full story on CryptoSlate Understand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Fortitude borrowed Zcash (ZEC) and sold $8.3 million worth of the coins to fund an expansion of its mining operations. Because the loan is repayable in dollars rather than ZEC, the firm can profit by selling borrowed coins now and buying them back cheaper later, while the new machines add hashpower competing for the same block rewards. For ZEC holders, the sale adds near-term supply pressure and the added mining competition could weigh on network economics, though the dollar amount is small relative to overall market liquidity.
