Expanding BTC Mining Operation: Cipher Acquires $100M Worth of 37,000 Bitmain Antminers

Cipher Mining Acquires 37,000 Bitmain Antminers for $100M

NASDAQ-listed Bitcoin mining company Cipher Mining Inc. has recently purchased 37,396 units of the latest Bitmain Antminer T21 series. This acquisition, valued at around $99.5 million, will significantly increase Cipher Mining’s self-mining capacity by 7.1 EH/s. The delivery of these cutting-edge miners is expected in the first half of 2025.

Expansion Plans and Cost Efficiency

Cipher Mining has also secured an option to acquire an additional 45,706 Antminers, representing 8.7 EH/s, from Bitmain. These miners are scheduled for delivery in 2024. The company’s CEO, Tyler Page, stated that this expansion aligns with their goal of establishing a 165 MWh facility by 2025. Cipher Mining aims to maximize profits by leveraging their custom software and operations stack, as well as the attractive pricing dynamics in the ERCOT market.

Strategic Moves and Bull Run Anticipation

Cipher Mining has been strategically positioning itself for a potential Bitcoin bull run since early 2023. In Q1, the company acquired 11,000 mining rigs from Canaan, bringing its total mining capacity to 7.2 EH/s. Additionally, Cipher Mining purchased a Texas mining site for $7 million in November 2023, which is expected to boost its total capacity to 300 MWh by 2025.

Tether Ventures into Bitcoin Mining

Tether, the issuer of the USDT stablecoin, is venturing into Bitcoin mining with a $500 million investment over three years. The funds will be used to create crypto mining sites and acquire stakes in mining operations. Tether aims to evolve from a crypto financial service provider to Bitcoin infrastructure support, with a focus on utilizing renewable energy and its Moria mining software.

Hot Take: Cipher Mining Expands Mining Operations with Bitmain Antminers

Cipher Mining’s recent acquisition of 37,000 Bitmain Antminers worth $100 million marks a significant expansion of their Bitcoin mining operations. With the addition of these cutting-edge miners, Cipher Mining expects to increase its self-mining capacity and maximize profits. The company’s strategic moves, including the acquisition of mining rigs and a Texas mining site, position them well for potential growth during the anticipated Bitcoin bull run. Meanwhile, Tether’s entry into Bitcoin mining highlights the increasing interest in this sector and their commitment to renewable energy and Bitcoin infrastructure support.