Fortitude Mining Holdings, Digital Currency Group's (DCG) Zcash-focused mining subsidiary, has purchased a 9.4% stake in HeartSciences (Nasdaq: HSCS) ahead of the two companies' proposed merg
Fortitude Mining Holdings, Digital Currency Group's (DCG) Zcash-focused mining subsidiary, has purchased a 9.4% stake in HeartSciences (Nasdaq: HSCS) ahead of the two companies' proposed merger, adding a fresh financial layer to a deal that still carries meaningful execution risk.
Fortitude purchased approximately $1,000,000 of HeartSciences' common stock at $2.43 per share, a 22% premium to the closing price on the purchase date, acquiring 411,522 shares and a roughly 9.4% stake in the company.The investment provides additional working capital to HeartSciences and strengthens its balance sheet ahead of the expected closing of the proposed business combination.
The investment does not change the exchange ratio, and Fortitude's equity holders will not receive additional closing shares for the $1 million injection, according to an SEC-filed company release.Because the placement sits outside the exchange-ratio formula, the cash buys target-company equity without increasing the merger consideration payable to Fortitude's existing owners.
On June 23, 2026, Fortitude Mining Holdings and HeartSciences entered into a definitive merger agreement to combine in an all-stock transaction.Upon closing, the combined company will operate under the Fortitude brand and is expected to trade on the Nasdaq Capital Market under the ticker symbol "TUDE", subject to Nasdaq approval.DCG is expected to own approximately 95% of the voting interests of the combined company at closing on a fully diluted basis.
Fortitude is described as an institutional-scale, vertically integrated venture mining platform operating across the Proof-of-Work ecosystem and anchored in Zcash, currently wholly-owned by Digital Currency Group.Zcash accounted for 61% of Fortitude's Q1 2026 mining revenue, while Bitcoin declined to 36%.
The proposed transaction is expected to close in the second half of the current calendar year and remains subject to customary closing conditions, including approval by HeartSciences' shareholders. HeartSciences has warned that if the merger fails without another viable transaction, the company could face liquidation. Until a definitive proxy sets the vote date, Fortitude's equity injection supports the target's operations but does not remove the deal's approval or execution risk.
Sources:GlobeNewswire: Fortitude Invests $1.0 Million in HeartSciences at a 22% PremiumCryptoSlate: Zcash miner buys 9.4% of merger target that warns failed deal could end in liquidationBusinessWire: Fortitude and HeartSciences Announce Business Combination
