Major Bitcoin Miner Starts Zcash Operations, Signaling Strategic Shift

Edgen Crypto

·Mar 25 2026, 12:21

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Key Takeaways

A major Bitcoin mining operator has started mining Zcash (ZEC), providing a significant endorsement and a potential boost to the privacy coin's network security. The move is a strategic diversification driven by tightening profit margins in the Bitcoin mining sector, where production costs are outstripping the current market price.

A systemically important Bitcoin miner began mining Zcash on March 25, 2026, adding significant credibility to the ZEC network.
The new operation is expected to increase Zcash's hashrate and security, making the network more robust and decentralized.
This diversification comes as Bitcoin miners face an average production cost of $88,000, well above the current market price of around $70,000.

Major Bitcoin Miner Begins Zcash Mining on March 25

In a significant vote of confidence for Zcash (ZEC), a systemically important Bitcoin mining company commenced Zcash mining operations on March 25, 2026. This expansion by an established industry player is expected to directly enhance the Zcash network by increasing its total hashrate, which improves security and decentralization. The move provides a strong institutional endorsement for the privacy-focused cryptocurrency, potentially boosting investor confidence and signaling its growing legitimacy within the digital asset ecosystem.

Bitcoin Profit Squeeze Forces Miner Diversification

The strategic shift into Zcash mining is a direct response to severe economic pressures within the Bitcoin sector. With Bitcoin's price hovering around $70,000, it remains significantly below the estimated average production cost of $88,000 for many miners. These shrinking profit margins are forcing smaller and mid-sized operators to exit the market, leading to a greater concentration of hashrate among a few large pools. This miner's expansion into Zcash represents a calculated business decision to diversify revenue streams as profitability in Bitcoin mining becomes increasingly challenging.