Cipher Mining, a publicly traded Bitcoin mining company, has announced a substantial investment in cryptocurrency mining hardware. The company is set to acquire 37,396 units of Bitmain Antminer T21 miners in a new agreement with the Chinese crypto mining giant Bitmain, it said in a press statement.
This strategic move aims to boost Cipher’s mining capabilities and position it for future growth in the digital currency space.
The newly acquired mining equipment is expected to provide an impressive 7.1 exahashes per second (EH/s) of self-mining capacity, a significant addition to Cipher’s mining operations. According to Cipher’s CEO, Tyler Page, this acquisition will enable the company to establish its first 135 megawatts (MW) of mining capacity at its recently acquired Black Pearl site.
Furthermore, Cipher has secured an option to acquire an additional 45,706 miners, which would represent an additional 8.7 EH/s of mining capacity in 2024. This strategic move positions Cipher for further expansion and growth in the cryptocurrency mining sector.
One notable aspect of this acquisition is the favorable terms Cipher has secured. The company has locked in the purchase price for these mining rigs at an attractive rate of $14 per terahash (TH). Tyler Page expressed the company’s forward-looking perspective, stating, “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.”
This substantial investment underscores Cipher’s confidence in the Bitcoin market. In November 2023, Cipher had already demonstrated its commitment to growth by signing a purchase agreement for a new Texas site valued at $7 million, paid in newly issued common stocks. This site is expected to become operational in 2025 and is poised to have a potential capacity of up to 300 megawatts.
Cipher has been proactive in expanding its crypto mining capabilities throughout 2023. In May, the company acquired 11,000 Canaan A1346 mining rigs, further strengthening its position in the industry.
Cipher Mining, based in the United States, gained public attention in 2021 when it completed a $2 billion merger with Nasdaq-listed Good Works Acquisition Corp. As a subsidiary of Bitfury, a prominent cryptocurrency mining firm, Cipher Mining has been actively contributing to the Bitcoin ecosystem. Bitfury, reportedly responsible for mining a significant portion of Bitcoin’s total supply, further solidifies Cipher Mining’s standing in the crypto mining sector.
This latest acquisition of Bitmain Antminers positions Cipher Mining as a major player in the global crypto mining industry, with plans for expansion and a positive outlook on the future of digital currencies.
