Cipher Mining Expands Operations with Major Purchase of Mining Devices
Cipher Mining, a publicly traded Bitcoin mining firm, has announced a new agreement to purchase 37,396 units of Antminer T21 miners from Bitmain. This acquisition will significantly increase Cipher’s self-mining capacity by delivering 7.1 exahashes per second (EH/s) of mining power by the first half of 2025. The company plans to use this new equipment to build its first 135 megawatts (MW) at the recently acquired Black Pearl site. Cipher has also secured the option to acquire an additional 45,706 miners in 2024.
Locking in Favorable Terms for Mining Rigs
The purchase of these mining devices allows Cipher to secure a “very attractive” price of $14 per terahash (TH), effectively controlling its biggest potential capital expense. Cipher’s CEO, Tyler Page, believes that this move is strategically timed ahead of an anticipated bull market for Bitcoin.
A Bullish Outlook on Bitcoin Market
This latest investment demonstrates Cipher’s positive outlook on the Bitcoin market. In addition to this acquisition, the company previously signed a purchase agreement for a new Texas site with a potential capacity of up to 300 megawatts. Cipher has also been actively acquiring new mining devices throughout 2023, including 11,000 Canaan A1346 mining rigs in May.
About Cipher Mining
Cipher Mining is a subsidiary of Bitfury and went public in 2021 through a $2 billion merger with Good Works Acquisition Corp. As of March 2021, Bitfury had reportedly mined nearly 600,000 BTC, which accounts for approximately 3% of all Bitcoin ever mined.
Hot Take: Cipher Mining Expands Self-Mining Capacity to Capitalize on Bitcoin Market Growth
Cipher Mining’s significant purchase of mining devices from Bitmain reflects its confidence in the future growth of the Bitcoin market. By expanding its self-mining capacity, Cipher aims to position itself for success in an anticipated bull market. This strategic move allows the company to lock in favorable terms for mining rigs and control its biggest potential capital expense. With aggressive acquisitions of mining equipment and plans for a new Texas site, Cipher Mining is actively positioning itself as a major player in the Bitcoin mining industry.
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