Zcash mining activity has risen more than 2.5 times since the start of 2026, and stronger ZEC prices have pushed estimated mining revenue per megawatt-hour to roughly four times the level generated by Bitcoin miners, according to new analysis from Grayscale Research.
The findings, published by Grayscale Research Director Zach Pandl, highlight how this year’s extraordinary ZEC price rally has rebuilt the economics of a privacy-coin mining sector that spent years in the shadow of the Bitcoin network.
## Twice the revenue per machine, four times per megawatt
According to Pandl’s estimates, Zcash miners currently generate about 2 million USD in total revenue each day, compared with approximately 35 million USD earned across the Bitcoin network. Bitcoin’s aggregate figure remains far larger because its network contains vastly more computing power. But the per-unit comparison reverses the picture.
On an individual-machine basis, Grayscale estimated that a Zcash miner earns about twice the daily revenue of a comparable Bitcoin miner. The gap widens further when measured by power consumption: Zcash mining produces approximately four times as much revenue per megawatt-hour as Bitcoin mining. Under the assumptions used in the analysis, ZEC mining revenue per unit of electricity also exceeds the income offered by some artificial intelligence and high-performance computing cloud services, a comparison that has become a standard benchmark as miners diversify beyond proof-of-work.
Zcash uses a proof-of-work consensus system in which miners compete to process transactions and add blocks, earning newly issued ZEC plus transaction fees. But operators cannot simply chase the better payoff by moving hardware between networks. Zcash relies on the Equihash mining algorithm, while Bitcoin uses SHA-256 machines, so the two sectors use entirely different equipment.
Grayscale’s estimates compare revenue rather than net profit. Actual operator earnings vary after accounting for power rates, equipment prices, cooling, maintenance, facility costs, and mining pool fees.
## Hash rate more than 2.5x higher in 2026
Rising ZEC prices have encouraged miners to add computing power, pushing total Zcash mining activity to more than 2.5 times its level at the beginning of the year, according to Pandl. Hash rate measures the computing power dedicated to securing a proof-of-work chain, and as more machines join, individual miners face stiffer competition for the same block rewards.
Pandl described the trend as a reinforcing cycle: a higher ZEC price makes mining more attractive, fresh machines raise the network’s hash rate, and added computing power increases the cost of attacking the chain. Grayscale believes improved security can in turn support investor confidence in the asset, although the cycle depends on ZEC retaining enough value to cover miners’ operating expenses.
The economics can shift quickly as participation grows. Zcash adjusts its mining difficulty to match the computing power on the network, so adding machines eventually makes each unit of hash rate less productive unless ZEC prices or transaction-fee revenue rise at the same time. Supply issuance also weighs on the calculation. Zcash follows a Bitcoin-like scarcity model with a maximum supply of 21 million coins and scheduled reductions in block rewards, meaning lower issuance steadily reduces the number of new tokens available to miners.
## The price rally that changed the equation
The mining boom follows a dramatic repricing of ZEC during 2026. On September 4, the token climbed above 1,000 USD for the first time after gaining 20 percent in a single session, a move that liquidated roughly 34.5 million USD in short positions over 24 hours. ZEC had advanced approximately 2,300 percent year over year from about 42 USD in September 2025, with trading volume reaching 1.2 billion USD during the break above 1,000 USD and market capitalization rising to approximately 16.8 billion USD.
Price gains flow directly into miner revenue because block rewards are paid in ZEC. A miner producing the same number of coins earns more in dollar terms when the token rises, even if equipment and electricity use remain unchanged.
The same sensitivity cuts both ways. CoinGecko data showed ZEC trading near 1,093 USD on September 11 after falling close to 11 percent over 24 hours, a reminder of how quickly the dollar value of mining rewards can change. Network growth may also compress per-machine revenue if additional hash rate pushes difficulty up faster than prices recover. Grayscale nonetheless considers Zcash mining attractive at current valuations, according to Pandl, with new computing power continuing to reinforce network security.
## Institutional access through ZCSH
American investors gained a new route to ZEC exposure on August 25, when Grayscale converted its existing Zcash Trust into an exchange-traded product listed on NYSE Arca under the ticker ZCSH, with an annual sponsor fee of 2.5 percent. The fund held more than 313.5 million USD in assets shortly before its exchange listing, with Coinbase Custody as custodian and BNY Mellon as administrator. An August filing amendment also disclosed that DCG International Investments, a subsidiary of Grayscale parent Digital Currency Group, was considering an investment tied to approximately 200,000 ZEC, though the discussions were nonbinding.
The Securities and Exchange Commission separately closed an investigation into the Zcash Foundation in January without recommending enforcement action. The inquiry had begun with an August 2023 subpoena concerning crypto asset offerings.
For the broader mining industry, the Grayscale analysis underscores that Bitcoin is no longer the only proof-of-work game in town. Bitcoin traded near 77,900 USD on September 11, with Ethereum around 2,530 USD and Solana near 102 USD.
4x revenue per megawatt-hour beating AI cloud leases is the wild part. mining boards are about to redo the 2021 math all over again
2M/day total vs Bitcoin 35M but 4x per megawatt-hour. small pond, absurdly efficient machines. the ZEC rally did all the work here
hash rate more than doubling since January is the part that matters. miners vote with hardware, not with tweets
2M a day across the whole zec network vs 35M for btc, and per megawatt zec still wins 4x over. math is math
and thats with hash rate only up 2.5x since january. imagine the difficulty bomb when more farms do the switch math lol
equihash ASICs are zec-only though. farms that switch over cant pivot back to btc if the price turns, thats the real trap here
Thats the part people keep missing. An equihash ASIC is a one way door, if the ZEC rally stalls those machines are paperweights, no pivoting back to btc
difficulty already ate a chunk of the margin since farms started switching in spring. that 4x per mwh figure is a rear view mirror stat more than a forward one
Zach Pandl putting out a Zcash mining note is interesting in itself. Grayscale usually spots the narrative before retail does
grayscale also runs a zec trust, so this note is basically marketing for their own bag. numbers still interesting tho
every grayscale note doubles as a pitch for their own trust, been that way since GBTC. still, the difficulty math holds up if you check it yourself
Grayscale publishing bullish zec research right after the rally. Convenient timing, but the per-machine revenue numbers are hard to argue with.