Zcash mining company plans to merge with HeartSciences, causing the latter's stock to surge

Odaily reported that Fortitude Mining, a Zcash mining company under Digital Currency Group, announced it has signed a definitive merger agreement with HeartSciences Inc., a Nasdaq-listed small-cap medical technology company, planning to merge the two companies. Following the news, HeartSciences' stock price rose approximately 60% during Tuesday's trading session, closing up about 55% at $2.70.

Fortitude primarily operates Zcash mining business. Despite ZEC's recent weak performance, DCG founder and CEO Barry Silbert stated that Zcash remains one of the most attractive opportunities in the digital asset space.

Fortitude CEO Andrea Childs stated that the merger is not based on business synergies, but rather to gain access to the public capital market, thereby securing more flexible financing channels to accelerate its core strategy, including a Zcash-focused "venture mining" platform, and to continue pursuing high-return opportunities within its power asset portfolio.

Both parties expect the transaction to be completed in the second half of this year. The deal also indicates that some crypto mining companies are trying to access capital markets through mergers with listed companies to support subsequent expansion.