Cipher Mining Bolsters Bitcoin Operations with Massive Miner Purchase
As part of its efforts to expand its operations, the publicly traded Bitcoin mining company Cipher Mining (CIFR) has just made a massive purchase of cryptocurrency mining machines.
According to an announcement made by the company on December 18th, Cipher Mining (CIFR) will purchase 37,396 Antminer T21 miners from Bitmain, the Chinese cryptocurrency mining powerhouse, under a new arrangement.
The announcement anticipates that the new mining equipment will deliver 7.1 exahashes per second (EH/s) of capability for self-mining by the first half of 2025. The purchase, as stated by Cipher’s Chief Executive Officer, Tyler Page, will make it possible for the company to construct its first 135 megawatts (MW) at the Black Pearl site, which it recently acquired.
Additionally, Cipher has the option to acquire another 45,706 miners in 2024, which would represent 8.7 EH/s. According to the CEO, the purchase enables Cipher to secure the pricing of mining rigs at a “very attractive” price of $14 per terahash (TH).
“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.”
The CEO also stated that this investment is indicative of Cipher’s strong outlook on the Bitcoin market. According to reports, Cipher entered into a purchase deal in November 2023 to acquire a new location in Texas for the price of seven million dollars, which was paid for in newly issued common stocks.
Reports project that the location will become operational in 2025 and has the potential to produce up to 300 megawatts of power. During the year 2023, Cipher has also been making significant purchases of new cryptocurrency mining equipment.
In May, the company purchased 11,000 Canaan A1346 mining machines. In 2021, Cipher Mining, headquartered in the United States, went public by striking a merger agreement with Good Works Acquisition Corp., listed on the Nasdaq.
The acquisition was worth $2 billion. Reports indicate that as of March 2021, the company, which is a subsidiary of the cryptocurrency mining company Bitfury, mined at least 600,000 BTC, equivalent to roughly three percent of the total amount of Bitcoin ever mined.