April 19, 2024
Cipher Mining Buys 37K Bitmain Antminers for $99.5M
Latest Cryptocurrency News

Cipher Mining Buys 37K Bitmain Antminers for $99.5M

Cipher Mining (CIFR), a publicly traded Bitcoin mining company, is set to enhance its operations with the acquisition of 37,396 Antminer T21 miners from Chinese crypto mining giant Bitmain. The purchase is expected to yield 7.1 exahashes per second (EH/s) of self-mining capacity by the first half of 2025.

Cipher CEO Tyler Page highlights the significance of this investment, stating that it allows the company to construct its initial 135 megawatts (MW) at the recently acquired Black Pearl site. Additionally, Cipher has the option to purchase an extra 45,706 miners, representing 8.7 EH/s in 2024.

The acquisition enables Cipher to secure a favorable price of $14 per terahash (TH) for the mining rigs. Page emphasizes that this move reflects Cipher’s optimistic outlook on the Bitcoin market.

“We are controlling our biggest potential capital expense and locking in favorable terms ahead of what we believe will be a bull market for Bitcoin.”

In November 2023, Cipher reportedly finalized a $7 million purchase agreement for a new Texas site, paid in newly issued common stocks. The site, expected to be operational in 2025, has a potential capacity of up to 300 megawatts.

Throughout 2023, Cipher has been actively acquiring new crypto mining devices, including 11,000 Canaan A1346 mining rigs in May.

Originally based in the United States, Cipher Mining went public in 2021 through a $2 billion merger deal with Nasdaq-listed Good Works Acquisition Corp. As a subsidiary of Bitfury, a prominent cryptocurrency mining firm, Cipher has reportedly mined nearly 3% of all Bitcoin as of March 2021, amounting to at least 600,000 BTC.

The latest move underscores Cipher’s commitment to expanding its mining capacity and capitalizing on the evolving Bitcoin market dynamics.

Image By vecstock

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