Cipher Mining, a publicly traded Bitcoin mining firm, has announced a major expansion in its mining operations with a substantial purchase of cryptocurrency mining equipment. The company is set to acquire 37,396 units of Antminer T21 miners from Bitmain, a renowned Chinese crypto-mining giant. This acquisition, valued at $99.5 million, is expected to significantly bolster Cipher Mining’s mining capabilities.
The newly acquired mining equipment is anticipated to deliver an impressive 7.1 exahashes per second (EH/s) of self-mining capacity by the first half of 2025. This substantial increase in mining power will enable Cipher Mining to advance its operations and strengthen its presence in the competitive cryptocurrency mining sector.
Cipher mining strategic investment and expansion
Cipher Mining’s CEO, Tyler Page, views this purchase as a strategic move allowing the company to establish its first 135 megawatts (MW) mining capacity at its recently acquired Black Pearl site.
In addition to this acquisition, Cipher Mining has secured an option to purchase an additional 45,706 miners, representing an additional 8.7 EH/s of mining power in 2024.
One notable aspect of this investment is Cipher Mining’s ability to lock in the purchase price for mining rigs at an attractive rate of $14 per terahash (TH). Tyler Page emphasized the significance of this decision, 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.”
Bullish outlook on the Bitcoin market
Cipher Mining’s substantial investment in mining equipment reflects the company’s optimistic outlook on the future of the Bitcoin market. This move comes after Cipher Mining reportedly signed an agreement in November 2023 to acquire a new mining site in Texas for $7 million, paid in newly issued common stocks. This Texas site is expected to become operational in 2025 and could potentially provide a capacity of up to 300 MW.
Throughout 2023, Cipher Mining has demonstrated a proactive approach to expanding its crypto-mining operations. In May, the company successfully acquired 11,000 Canaan A1346 mining rigs, further boosting its mining capacity and infrastructure.
Cipher mining’s background and growth
Cipher Mining, headquartered in the United States, went public in 2021 following a $2-billion merger with Nasdaq-listed Good Works Acquisition Corp. The company is a subsidiary of Bitfury, a well-established cryptocurrency mining firm. Bitfury is renowned for having mined approximately 600,000 BTC, equivalent to nearly 3% of all Bitcoin ever to be mined, as of March 2021.
