With 12 MW of power capacity now delivered, Fortitude has completed construction, brought the facility online, and validated its electrical infrastructure ahead of full-scale operations. The energization follows Fortitude’s previous announcement that it has entered into a definitive agreement for a business combination transaction (the "Proposed Transaction") with HeartSciences Inc. (NASDAQ:HSCS) ("HeartSciences"), aiming to bring a leading vertically-integrated Zcash mining platform to the public markets.

The energization of the Grand Island Facility, the Company’s first greenfield build, further strengthens its owned power portfolio that now spans over 60 MW across seven sites in South Dakota, Nebraska, Texas, and New York. The project showcases Fortitude’s in-house capability to design, construct, and energize a greenfield data center from the ground up, a development capability central to the Company’s expansion strategy. The power portfolio represents a key pillar in Fortitude’s business and underpins Fortitude’s vertically-integrated Zcash and venture mining strategy. In our view each megawatt of owned capacity drives down mining costs, creates revenue optionality through demand response and grid participation, and positions Fortitude to capture additional high-conviction opportunities across the Proof-of-Work ecosystem. With estimated power costs of approximately $0.045/kWh, the Grand Island Facility is expected to contribute to Fortitude's planned trajectory of lowering its Zcash direct cash mining cost from approximately $70 per coin toward approximately $40 per coin, assuming successful equipment deployment and stable power, network, and market conditions. We expect this reduction will be driven by newer-generation equipment efficiency and the lower power costs of owned sites relative to third-party hosted capacity. We believe the Grand Island Facility represents only the beginning of a complementary strategy that pairs greenfield development with targeted acquisitions to expand Fortitude’s owned capacity across the Proof-of-Work ecosystem.