Cipher Mining set to buy 28k-56k mining rigs from Bitfury

TL;DR Breakdown

  • Cipher Mining confirmed that they are signing an agreement with Bitfury. 
  • In the agreement, Cipher mining will buy 28k-56k rigs with an advance payment of 10 million USD. 

In a lucrative deal, Cipher Mining has announced that it will buy 28,000 to 56,000 mining rigs from a mining service provider, Bitfury. The two firms entered into an agreement where the former was able to get the mining rigs at lucrative prices. 

With the global attention shifting towards cryptocurrencies, it is clear that this partnership will leave footprints for other mining companies to follow. Cipher Mining is a US-based firm, where the stance of crypto mining is still unclear. 

Bitfury recently announced its plans to go public as many investors expect this to be Europe’s biggest crypto evaluation. This new deal shows that the influence of mining is not limited to the European continent. 

Cipher Mining and Bitfury filling Form 8-K

By filling the 8-K form, the two firms revealed to the US Securities and Exchange Commission (SEC) that they will be entering into an agreement. According to this agreement, Bitfury will be sending over mining rigs to Cipher Mining, starting in June 2022. 

This exchange will be continued through December 2022, and it was also revealed that the delivery would happen in 7 batches. In advance, Cipher Mining will have to pay as much as 10 million USD, while Bitfury will quote a maximum of 6,250 USD per piece. 

In his statement, Tyler Page, the CEO of Cipher Mining, thanked Bitfury and stated,

“We were able to secure these mining rigs at an attractive price and demonstrate the unique potential of our relationship with Bitfury.”

Each machine’s capability of producing hashing power is about 195 TH/s. This hashing power will consume around 6.3KWh-6.5KWh of electricity. 

Crypto mining continues to draw attention

With the recent partnership between Nelnet and Ripple, there are a number of firms trying to reduce the carbon footprint of crypto mining. Unlike China, the USA still hasn’t banned crypto mining, and it seems that Cipher Mining is looking to expand its operations. 

While crypto mining is definitely lucrative, it seems that power consumption remains an issue for regulatory authorities. 

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