Cipher Mining to Boost Operations with Major Purchase of Bitmain's Crypto Mining Devices
Summary:
Cipher Mining, a publicly traded Bitcoin mining firm, plans to expand its operations with the purchase of 37,396 Antminer T21 miners from Bitmain. The acquisition is expected to increase the company's self-mining capacity to 7.1 exahashes per second by the first half of 2025. The investment also secures a 'highly appealing' price of $14 per terahash for the mining hardware and marks Cipher's optimistic view of the Bitcoin market. The company has also reportedly agreed to buy a new site in Texas for $7 million, set to be operational in 2025 with a potential capacity of up to 300 megawatts.
Bitcoin (BTC) mining company Cipher Mining (CIFR), which is listed on the stock exchange, is set to increase its operations with a substantial investment in new cryptocurrency mining hardware. As part of a newly forged deal, Cipher is to purchase 37,396 units of the Antminer T21 miners from China's Bitmain, according to an announcement made on December 18. This newly acquired equipment is projected to yield a self-mining capacity of 7.1 exahashes per second (EH/s) by the first half of 2025.
Cipher's CEO, Tyler Page, has said that the acquisition would enable the company to establish its first 135 megawatts (MW) at the recently procured Black Pearl site. Cipher also has an option to acquire an additional 45,706 miners, offering 8.7 EH/s in 2024.
The investment secures Cipher a 'highly appealing' price of $14 per terahash (TH) for the mining hardware. Tyler Page commented that the company is mitigating potential capital expenses while cementing favourable purchasing terms ahead of a predicted prosperous Bitcoin market.
This venture underlines Cipher's positive outlook for the Bitcoin market. The company is reportedly set to purchase a new site in Texas for $7 million in newly issued common shares in November 2023. The site is predicted to become operational in 2025 and could have a capacity of up to 300 megawatts.
In 2023, Cipher has also been proactively purchasing new cryptocurrency mining hardware, acquiring 11,000 Canaan A1346 mining rigs in May.
Cipher Mining, based in the United States, became a publicly traded company in 2021 following a $2 billion merger deal with Good Works Acquisition Corp listed on Nasdaq. The firm is a subset of the cryptocurrency mining enterprise Bitfury, which is reported to have mined at least 600,000 BTC, approximately 3% of all Bitcoin ever to be mined, as of March 2021.
Published At
12/18/2023 5:13:20 PM
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