Every megawatt of electricity poured into Zcash mining now generates roughly four times the revenue of the same megawatt spent mining Bitcoin — and one of Wall Street’s biggest crypto asset managers says the boom is making the privacy coin’s network harder to attack than ever.
By Diego Rivera | September 20, 2026
The Hook: The Mining Gold Rush Nobody Saw Coming
In a new analysis, Zach Pandl, Research Director at Grayscale, laid out an eye-popping comparison: Zcash miners collectively earn about 2 million USD per day, while the Bitcoin network generates roughly 35 million USD daily. Bitcoin’s pie is far bigger — but per individual machine, Grayscale estimates a Zcash miner earns about twice the daily revenue of a comparable Bitcoin miner. Measured by power — the metric that decides whether a data center lives or dies — Zcash mining produces approximately four times as much revenue per megawatt-hour as Bitcoin mining. Under Grayscale’s assumptions, ZEC mining revenue per unit of electricity even beats some artificial intelligence and high-performance computing cloud services. For anyone who owns mining-adjacent stocks or simply wants to understand where the industry’s machines are heading, that gap is the story.
On-Chain Evidence: Hash Rate Up More Than 2.5x This Year
The numbers behind the boom are straightforward. Total Zcash mining activity — the computing power, or hash rate, dedicated to securing the network — has grown to more than 2.5 times its level at the start of 2026, according to Pandl. The trigger was price. ZEC crossed above 1,000 USD for the first time on September 4, after gaining 20% in a single session, with about 34.5 million USD in short positions liquidated over 24 hours. Crypto.news previously reported the token had climbed roughly 2,300% year over year from about 42 USD in September 2025, with trading volume hitting 1.2 billion USD and market capitalization reaching approximately 16.8 billion USD during that move.
- Zcash miner revenue: ~2 million USD per day, versus ~35 million USD for the whole Bitcoin network.
- Per-machine earnings: roughly 2x a comparable Bitcoin miner, per Grayscale’s estimate.
- Revenue per megawatt-hour: ~4x Bitcoin — and above some AI cloud services under the analysis’s assumptions.
- Network hash rate: up more than 2.5x since January 2026.
Why does the hash rate matter to a coin’s value? Think of it as the number of guards protecting a vault. More computing power means an attacker who wants to rewrite Zcash’s transaction history needs to outspend everyone else — and that cost keeps climbing as miners pile in. Pandl describes a reinforcing cycle: a higher ZEC price makes mining more profitable, new machines raise the hash rate, and the stronger network supports investor confidence. Grayscale considers Zcash mining attractive at current valuations on that basis.
The Core Conflict: Revenue Is Not Profit
Before you imagine mining riches, read the fine print in Grayscale’s own framing. The comparisons are of revenue, not profit. An operator’s real earnings depend on electricity rates, equipment prices, cooling, maintenance, facility costs, and mining-pool fees. There is also a hardware wall between the two networks: Zcash runs on the Equihash algorithm while Bitcoin uses SHA-256 machines, so miners cannot simply shuttle the same rigs back and forth when profitability flips. That insulation cuts both ways — today’s four-times gap cannot be arbitraged away overnight by Bitcoin farms, but Zcash operators are equally locked in if ZEC’s price falls.
And the price does fall. CoinGecko data showed ZEC trading near 1,093 USD on September 11 after dropping almost 11% in 24 hours — still astronomical versus a year earlier, but a reminder that mining rewards paid in ZEC shrink in dollar terms just as fast as they grew. Zcash also follows a Bitcoin-like scarcity model: a hard cap of 21 million coins with scheduled block-reward reductions, meaning future miners will need higher prices, more fees, or better machines to keep the same income. Rising difficulty — Zcash automatically adjusts it as hash rate grows — steadily dilutes each machine’s share of rewards too.
Market Implications: The Wall Street Door Is Already Open
The backdrop to Grayscale’s bullish framing is not accidental: the firm converted its Zcash Trust into an exchange-traded product, ZCSH on NYSE Arca, on August 25, letting US brokerage investors track ZEC without touching mining hardware or the coin itself. The fund carried more than 313.5 million USD in assets shortly before listing, charges a 2.5% annual sponsor fee, and an August filing disclosed that Grayscale parent DCG’s subsidiary was weighing an investment tied to roughly 200,000 ZEC. The SEC separately closed its investigation into the Zcash Foundation in January without recommending enforcement. Bitcoin, meanwhile, trades near 81,300 USD after a slight dip over the past day, per CoinGecko data — so the mining economics race is happening while the entire proof-of-work sector enjoys firmer prices than its summer lows.
For the broader market, the Zcash mining surge is a case study in how quickly capital migrates inside crypto when one network’s rewards outshine another’s. It also strengthens the security argument that privacy-coin skeptics have long dismissed: the harder and more expensive the network is to attack, the more credible its claim to being serious financial infrastructure.
The Verdict: A Miner’s Market, Not a Shopper’s Discount
Should a regular investor care? If you hold ZEC or mining stocks, yes — the four-times revenue gap and 2.5x hash-rate growth explain why this rally has industrial muscle behind it, not just speculation. If you do not, treat the Grayscale analysis as a map of where the industry’s electricity is flowing, and a reminder that mining profitability is a moving target: difficulty rises, rewards halve on schedule, and a single 11% down day reshuffles the math. Chasing today’s hottest mining economics is like chasing last year’s best-performing coin — by the time retail hears about it, the machines are already plugged in. The durable takeaway is the security flywheel: more miners, more power, harder to attack. That, not the daily revenue figure, is what Grayscale is really selling — in both senses.
The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.
4x revenue per megawatt for ZEC vs BTC and Zach Pandl put Grayscales name on it. miners rotate rigs and the hashrate spike writes itself
which is exactly how a privacy coin fixes its security budget. more hashrate chasing that 2M a day makes the network harder to attack
twice the daily revenue per machine vs a bitcoin rig is a strong claim. worth remembering Grayscale runs a ZEC trust, hardly neutral
Grayscale runs a ZEC trust sure, but Pandls math checks against public chain revenue. the incentive alignment is the tell, not the arithmetic
fair on the conflict of interest, but the per MWh math is plain arithmetic from public revenue data, hard to fudge
runs a ZEC trust sure, but the 4x per MWh comes from public revenue and hashrate numbers. the incentive question and the arithmetic question are separate
separate questions sure, but grayscale publishing the margin math is basically an ad to every sha256 farm with a power contract. the 4x compresses itself
4x the revenue per megawatt mining zcash vs btc. grayscale really out here writing the miner migration manual for free
Zcash does 2m a day total against bitcoins 35m. per machine its 2x. interesting how the framing changes the whole story.
framing is everything. 2m vs 35m total sounds dead, per megawatt sounds like a gold rush. both are true at once
both true but only one of them pays my electric bill this quarter. moved two sheds to equihash last month, the per MWh math is exactly as fat as Pandl says
two sheds on equihash last month and you are the dataset now lol. are secondhand rig prices moving yet, thatll be the tell
gpus on equihash died when asics shipped in 2018, the current wave is dedicated hardware too. secondhand asic pricing is where the 4x shows up first, watch the listings not the papers
2,300% in a year and hashrate only up 2.5x. machines havent caught up yet, which is exactly why per megawatt still looks this good
free research until hashrate goes 2.5x to 5x and the 4x per mwh compresses back to parity. the migration manual doubles as the margin compression schedule
compression takes hardware lead time tho, equihash rigs are backordered. fat margins last longer than people think when supply is the bottleneck
backorder argument only holds for new rigs. half the equihash influx is repurposed gpu sheds, those ship in weeks not quarters. margins compress faster than the supply chain story suggests
compression needs dedicated equihash asics to actually ship at scale tho. until bitmain puts out a real box the hashrate crawls up, it doesnt jump, and the 2M a day keeps printing
the migration manual framing is right but understated. pandl put per megawatt math in a research note that every mine CFO reads on monday morning. that 2M a day is about to get very crowded
privacy coin security budget going up is good news for zec holders. awkward year for the zcash is dead crowd
equihash rigs cant just repurpose to sha256 anyway so its a bit apples to oranges, but yeah margins are fat right now
apples to oranges sure, but thats the point. whatever can switch is switching, and that is exactly how the 4x gets arbitraged away eventually
privacy coin hashrate at all time highs is the funniest outcome of 2026. regulators chase mixers while miners earn 2M a day securing zcash
meanwhile NU7 lands in november with 25 second blocks. faster chain, fatter security budget, awkward year for everyone who wrote zcash off in 2023
2m a day total against bitcoins 35m and somehow zcash is the story. the per megawatt framing is doing all the work here, pandl knows exactly what he is doing