Introduction

Zcash (ZEC) was originally developed as a privacy-focused alternative to Bitcoin. Its use of zero-knowledge proofs (zk-SNARKs) allows for shielded transactions that protect user identity and transaction history, an increasingly rare feature in a regulatory environment growing more hostile toward anonymity. But in 2025, with the mining landscape becoming more competitive, the big question is: is it still profitable to mine Zcash?

The State of Zcash Mining in 2025

Zcash is a Proof-of-Work (PoW) cryptocurrency which uses the Equihash algorithm. While it was once GPU-friendly, mining ZEC with standard GPUs or CPUs is no longer practical. The network is now dominated by powerful Equihash ASICs like Bitmain’s Antminer Z15 and Z15 Pro, which offer significantly higher efficiency and performance.

As of early 2025, the block reward sits at 1.56 ZEC following the May 2023 halving. The next halving is expected around November 2025. Like Bitcoin, these events reduce supply issuance and can increase scarcity, but they also compress miner margins unless offset by rising prices.

Profitability in 2025: What to Consider

Profitability depends on a few major variables:

  • Mining Hardware: ASICs like the Antminer Z15 Pro deliver competitive hashrates with relatively efficient power consumption, but require a steep upfront investment (around $2,500 as of early 2025). Older models like the Antminer Z9 Mini are now obsolete and unable to compete at current difficulty levels.
  • Electricity Costs: Power remains the largest ongoing expense. At rates above $0.06–$0.07/kWh, Zcash mining becomes hard to justify unless the price of ZEC rises significantly. Industrial hosting at $0.04–$0.05/kWh is often necessary to stay profitable.
  • Network Difficulty: As more ASICs come online, the network’s difficulty increases, reducing individual miner rewards. Staying competitive requires regular hardware upgrades and close monitoring of efficiency metrics.
  • Block Reward Halvings: Zcash’s reward halves every four years most recently in May 2023, cutting earnings dramatically. This forces new miners to aim for quicker ROI before the next scheduled halving in late 2025.

Risks and Challenges

ZEC faces increasing pressure from regulators, particularly because of its privacy features. As a result, many centralized exchanges have delisted or restricted ZEC, reducing liquidity and limiting accessibility for new buyers. If more exchanges follow suit, demand could fall, negatively impacting the price, and with it, mining profitability.

There’s also the hardware cost risk: ASICs aren’t multi-purpose devices. If Zcash becomes unprofitable or the algorithm changes, resale value plummets.

Mining Alternatives

If mining ZEC directly is too risky, costly, or technical, there are other ways to gain exposure:

  • Colocation Mining: If you own an ASIC but can’t run it at home, consider hosting it in a colocation facility. These centers offer low electricity rates (typically $0.04–$0.06/kWh), professional maintenance, and better uptime, often making ZEC mining viable when it wouldn’t be profitable at home.
  • Buy ZEC: You can acquire Zcash on select centralized exchanges, but listings have become scarce due to regulatory concerns. Some decentralized platforms, like ViteX, still support ZEC trading pairs, though liquidity can be limited.
  • Mine Bitcoin and Convert to ZEC: Platforms like Infinity Hash let users mine Bitcoin and allocate their rewards to ZEC payouts. This offers indirect exposure to Zcash with the superior stability and profitability of Bitcoin’s mining ecosystem.

Each method has its pros and cons. Buying ZEC directly can be hindered by regulatory pressure. DEXs offer more freedom but often suffer from low trading volume. Mining Bitcoin and converting gives you more predictable income, though you sacrifice direct control over ZEC block rewards.

Conclusion

Zcash mining in 2025 is a high-stakes game for those with efficient ASICs, and low electricity costs. With the next halving on the horizon, the margin for error is shrinking. Still, for those who can mine efficiently, opportunities remain.

As privacy coins become harder to access, mining may be a way to stay invested in one of the last remaining anonymous cryptos.

Want to earn ZEC daily without running hardware?

With Infinity Hash, you can allocate your Bitcoin mining rewards to ZEC and receive daily payouts, no setup, no noise, no hassle.