Cipher Mining, a publicly traded Bitcoin mining company, has entered into a substantial agreement with Chinese crypto mining giant Bitmain. The deal involves Cipher purchasing 37,396 units of Bitmain’s Antminer T21 miners at a cost of $99.5 million. The new mining equipment is expected to contribute 7.1 exahashes per second (EH/s) of self-mining capacity by the first half of 2025, as indicated in the official announcement. Cipher’s CEO, Tyler Page, highlighted the strategic significance of the purchase, emphasizing the ability to construct 135 megawatts (MW) at the recently acquired Black Pearl site.
Strategic Expansion and Future Plans:
This significant acquisition aligns with Cipher’s broader expansion plans, with the company securing an option to acquire an additional 45,706 miners, representing 8.7 EH/s in 2024. By securing these miners, Cipher aims to fortify its position and efficiently navigate potential market shifts. The purchase also allows Cipher to lock in a favorable price for the mining rigs at $14 per terahash (TH), providing cost stability amidst market fluctuations. Tyler Page expressed confidence in Cipher’s strategic approach, 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 and Previous Endeavors:
Cipher Mining’s recent move reflects its optimistic view of the Bitcoin market’s future. In November 2023, the company reportedly acquired a Texas site for $7 million, expected to be operational in 2025 with a potential capacity of up to 300 megawatts. This latest investment follows Cipher’s pattern of aggressive expansion, including the acquisition of 11,000 Canaan A1346 mining rigs in May 2023. Cipher Mining, a U.S.-based entity, went public in 2021 through a $2 billion merger with the Nasdaq-listed Good Works Acquisition Corp. The company operates as a subsidiary of Bitfury, a prominent cryptocurrency mining firm that reportedly mined nearly 3% of all Bitcoin as of March 2021.