Cipher Mining Bolsters Capacity with a 16,700 Miner Purchase Ahead of Bitcoin Halving
Summary:
Cipher Mining is set to boost its Bitcoin mining capabilities by purchasing 16,700 Avalon A1466 miners from Canaan. The new equipment will be split equally between the Bear and Chief Mountain facilities in Texas, pushing Cipher's self-mining capacity to 8.4 exahashes per second (EH/s). The acquisition is timed with the Bitcoin halving event in April, traditionally associated with a Bitcoin price surge. Despite not revealing the costs incurred, Cipher Mining is optimistic about the positive impact of the purchase, especially noting their successful experience with Canaan machines in the past.
Cipher Mining, a company specializing in Bitcoin mining, aims to boost its market position by acquiring 16,700 top-of-the-line Avalon A1466 miners, due for delivery in the next quarter. Expected to coincide with Bitcoin's much-anticipated halving event in April, Cipher plans to install these advanced miners at its Bear and Chief Mountain facilities in Texas, escalating the firm's self-mining prowess to an impressive 8.4 exahashes per second (EH/s).
Cipher Mining reached an agreement with the supplier, Canaan, a renowned Bitcoin mining firm, for the purchase. Bear LLC and Chief Mountain LLC, Cipher's joint venture partners, are also involved in the deal, with Cipher owning a 49% stake. The plan is to split the new fleet of miners equally between the Bear and Chief facilities, augmenting each center by 30 megawatts, or 1.25 EH/s.
Cipher Mining's CEO, Tyler Page, timed this substantial purchase to sync with the Bitcoin halving event, a significant period when Bitcoin mining rewards are slashed by half to control the influx of new coins. This occasion is historically linked with a price surge for Bitcoin. Page optimistically views these developments as Cipher's opportunity for extensive growth, projecting it to be among the industry's significant beneficiaries post-halving.
Although the official cost of the 16,700 miners remains undisclosed, Page expressed his satisfaction, saying the deal was made on extremely advantageous terms.
This marks Cipher's second business interaction with Canaan, with an emphasis placed on the excellent performance of the first batch of Canaan machines amid the extreme Texas summer heat, which registered a record 48.3°C (119°F) in 2023.
In the previous year, Cipher invested in 37,396 Antminer T21 miners from Bitmain, with delivery set for the first half of 2025. This purchase accounts for 7.1 EH/s of additional self-mining power at a cost of $99.5 million.
Cipher Mining successfully mined 465 BTC in the last month of the previous year, marking a steady increase of 7.4% from the preceding month. Its balance sheet reveals holdings of 796 BTC, valued at $34 million.
After a challenging 2022, the company's stock (CIFR) soared remarkably by 638%, from $0.56 to $4.13 in 2023, and currently enjoys a market cap of $1.01 billion. This puts Cipher Mining behind only Marathon Digital Holdings, Riot Platforms, CleanSpark and Hut 8 Mining in terms of market cap among Bitcoin mining companies.
Published At
1/4/2024 2:44:04 AM
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