Zcash mining has expanded more than 2.5 times since the beginning of 2026, with the rise in ZEC’s price lifting estimated revenue per megawatt-hour to about four times the level generated by Bitcoin miners, according to Grayscale.
Zcash miners are currently producing about $2 million in total revenue each day, compared with approximately $35 million across the Bitcoin network, said Grayscale Research Director Zach Pandl. Bitcoin’s overall figure is much higher because its network uses substantially more computing power, but Grayscale estimates that an individual Zcash mining machine earns about twice as much per day as a comparable Bitcoin machine.
The difference is greater when electricity use is measured. Pandl estimates that Zcash mining generates roughly four times as much revenue per megawatt-hour as Bitcoin mining. Under Grayscale’s assumptions, Zcash also produces more revenue per unit of electricity than some artificial intelligence and high-performance computing cloud services.
The figures represent revenue rather than net profit. Actual returns differ according to electricity prices, equipment and cooling costs, maintenance, facilities and mining-pool fees.
Zcash uses a proof-of-work system, in which miners compete to process transactions and add blocks to the blockchain. Successful operators receive newly issued ZEC and transaction fees, meaning token prices, network difficulty, hardware efficiency and power costs all affect profitability.
The two networks require different equipment. Zcash miners use machines designed for the Equihash algorithm, while Bitcoin mining relies on SHA-256 hardware. Equipment cannot simply be transferred between the networks when one becomes more profitable.
Mining power and network security
Higher ZEC prices have encouraged miners to add computing capacity, taking total Zcash hash rate to more than 2.5 times its level at the start of 2026, according to Pandl.
Hash rate measures the computing power used to mine and secure a proof-of-work blockchain. More machines increase the resources required to attack the network, but they also create greater competition for block rewards.
Pandl described the higher price, rising hash rate and improved security as a reinforcing cycle. Grayscale believes stronger security could support investor confidence, although the process depends on ZEC retaining enough value to cover operating costs.
The economics may change as participation grows. Zcash adjusts mining difficulty in response to the amount of computing power on the network, meaning each unit of hash rate can become less productive unless ZEC prices or transaction-fee income rise.
Zcash has a maximum supply of 21 million coins and scheduled reductions in block rewards, following a Bitcoin-like scarcity model. Lower issuance means miners may need higher prices, increased fees or more efficient equipment to maintain returns.
ZEC price rise boosts mining returns
ZEC rose above $1,000 on 4 September for the first time after gaining 20% in one session. About $34.5 million in short positions were liquidated over the following 24 hours.
The token had risen by roughly 2,300% year on year from about $42 in September 2025, while trading volume reached $1.2 billion during the move above $1,000. Its market capitalisation rose to approximately $16.8 billion.
Because block rewards are paid in ZEC, a miner producing the same number of coins earns more in dollar terms when the token price rises. However, CoinGecko data showed ZEC trading near $1,093 on 11 September after falling almost 11% in 24 hours, highlighting how quickly mining revenue can change.
Grayscale still considers Zcash mining attractive at its current valuation, Pandl said, although increasing hash rate could reduce revenue per machine if difficulty rises faster than the price recovers.
US investors gain Zcash exposure
Grayscale converted its Zcash Trust into an exchange-traded product on 25 August, listing it on NYSE Arca under the ticker ZCSH. The product gives investors using brokerage accounts exposure to ZEC without buying the cryptocurrency directly or operating mining equipment.
Grayscale set the annual sponsor fee at 2.5% and said the proceeds would support network development, marketing and other Zcash-related work. ZCSH holds ZEC while its shares trade through the traditional securities market, with authorised participants able to create and redeem share baskets to keep the market price close to net asset value.
Before the conversion, the fund traded on OTCQX as the Grayscale Zcash Trust. It held more than $313.5 million in assets shortly before its exchange listing. Earlier filings named Coinbase Custody as custodian and BNY Mellon as administrator.
An August filing amendment said DCG International Investments, a subsidiary of Grayscale parent Digital Currency Group, was considering an investment linked to about 200,000 ZEC. The discussions were non-binding, and the subsidiary could buy more shares, fewer shares or none.
The US Securities and Exchange Commission closed an investigation into the Zcash Foundation in January without recommending enforcement action. The inquiry began with an August 2023 subpoena concerning crypto asset offerings.
