Zcash Miners Now Earn Four Times What Bitcoin Miners Make per Megawatt — Inside Grayscale’s Math

Zcash miners are now earning roughly four times as much revenue per megawatt-hour as Bitcoin miners — and about twice as much per machine — according to an analysis by Grayscale Research Director Zach Pandl that turns conventional mining wisdom on its head.

By Michael Nguyen | October 3, 2026

In a mid-September Grayscale analysis, Pandl estimated that Zcash (ZEC) miners collectively generate about $2 million in total revenue each day, compared with approximately $35 million earned across the entire Bitcoin network. Bitcoin’s total is still vastly larger — but only because its network contains far more computing power. Strip out the size difference, and the per-unit economics have flipped in Zcash’s favor during 2026. For anyone holding mining stocks or ZEC, that shift is worth understanding.

The Hook: A Privacy Coin Out-Earning Bitcoin per Machine

Zcash is a privacy-focused cryptocurrency that uses a proof-of-work system, so miners compete to process transactions and add blocks — much like Bitcoin. But the two networks run on different algorithms: Zcash uses Equihash, while Bitcoin uses SHA-256. That matters because miners cannot simply move the same machines between networks when profitability shifts. A Bitcoin ASIC is a specialist tool; so is a Zcash rig.

Grayscale’s key comparisons, all revenue-based rather than net profit:

• Per machine — a Zcash miner earns about twice the daily revenue of a comparable Bitcoin miner, per Grayscale’s estimates.
• Per megawatt-hour — Zcash mining produces roughly four times the revenue of Bitcoin mining for the same electricity.
• Versus AI and cloud computing — under Grayscale’s assumptions, ZEC mining revenue per unit of electricity also exceeds the income offered by some AI and high-performance computing cloud services.

On-Chain Evidence: Hash Rate More Than 2.5x Higher This Year

Miners have noticed. According to Pandl, total Zcash mining activity — measured by hash rate, the computing power dedicated to securing a proof-of-work chain — has grown to more than 2.5 times its level at the beginning of 2026. The mechanism is a reinforcing cycle: a higher ZEC price makes mining more attractive, fresh machines raise the network’s hash rate, and added computing power makes the chain more expensive to attack. Grayscale argues that improved security then supports investor confidence in the asset — although the cycle depends on ZEC retaining enough value to cover miners’ operating expenses.

The Core Conflict: Price-Driven Booms Cut Both Ways

The mining boom follows a historic price run. On Sep. 4, ZEC climbed above $1,000 for the first time after gaining 20% in a single session, with about $34.5 million in short positions liquidated over 24 hours and trading volume reaching $1.2 billion. Its market capitalization rose to approximately $16.8 billion. The token had advanced roughly 2,300% year over year from about $42 in September 2025.

But the same sensitivity works in reverse. CoinGecko data showed ZEC trading near $1,093 on Sep. 11 after falling close to 11% over 24 hours — a reminder of how quickly the dollar value of mining rewards can change when your income is denominated in a volatile token. There’s also a structural drag: Zcash adjusts its mining difficulty as computing power grows, so every new machine makes each unit of hash rate less productive unless prices or fee revenue keep pace. And with a Bitcoin-like cap of 21 million coins and scheduled block-reward reductions, future issuance declines will squeeze miners further unless efficiency improves. Grayscale compared revenue, not profit — actual earnings vary with power rates, equipment costs, cooling, maintenance and pool fees.

Market Implications: A New Way to Get Exposure

Investors who want the Zcash mining story without buying rigs now have a listed route. On Aug. 25, Grayscale converted its Zcash Trust into an exchange-traded product on NYSE Arca under the ticker ZCSH, with a 2.5% annual sponsor fee. The fund held more than $313.5 million in assets shortly before listing, with Coinbase Custody as custodian and BNY Mellon as administrator. An August filing amendment also disclosed that Grayscale parent Digital Currency Group‘s subsidiary DCG International Investments was considering an investment tied to approximately 200,000 ZEC — a nonbinding discussion in which it could buy more, fewer, or none. Separately, the U.S. Securities and Exchange Commission closed an investigation into the Zcash Foundation in January without recommending enforcement action.

The Verdict

Grayscale nonetheless considers Zcash mining attractive at its current valuation, with Pandl noting that new computing power continues to reinforce network security. For regular investors, the takeaway is nuanced: per-megawatt economics can favor a smaller chain even when the giant next door earns seventeen times more in total. If you hold ZEC or mining-adjacent stocks, watch two things — the hash rate trend, which signals miner conviction, and ZEC’s price, which drives the entire revenue equation. A sustained price pullback would compress margins fast, exactly the way the Sep. 11 double-digit drop illustrated. For now, the machines keep coming.

The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.