Grayscale: Zcash mining profitability is significantly higher than Bitcoin’s, with mining activity surging more than 2.5 times this year.
2026.09.11 22:30:25
Grayscale Research Director Zach Pandl published an analysis noting that Zcash (ZEC) is a cryptocurrency similar to Bitcoin but with additional privacy features, with both networks secured via proof-of-work (PoW) mining. Driven by Zcash’s strong token price performance, its mining has become highly profitable. While Bitcoin’s network is far larger—with daily total miner rewards of roughly $35 million versus Zcash’s ~$2 million—Zcash is more favorable for individual miners. Grayscale estimates that Zcash offers around twice the daily reward per mining rig and four times the reward per megawatt-hour (MWh) compared to Bitcoin, though their mining hardware is not interchangeable. Additional data shows Zcash’s current per-MWh mining yield is even higher than that of some AI/high-performance computing cloud services. This higher profitability is spurring more mining activity: measured by standard hashrate metrics, Zcash’s total network mining activity has grown over 2.5 times this year. This forms a virtuous cycle: higher token prices drive more mining, which enhances network security, and stronger security in turn helps sustain elevated prices. Grayscale concludes that at current valuation levels, Zcash mining is very profitable, attracting more hashrate and supporting network security.
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