Cipher Mining, a publicly traded Bitcoin mining company, is significantly expanding its operations with a substantial purchase of cryptocurrency mining equipment. The firm has entered into an agreement to acquire 37,396 Antminer T21 miners from Bitmain, a leading Chinese crypto mining company, as announced on December 18.
This new acquisition will boost Cipher’s self-mining capacity to 7.1 exahashes per second (EH/s) by the first half of 2025. Cipher CEO Tyler Page emphasized that this purchase would facilitate the development of their first 135 megawatts (MW) at the newly acquired Black Pearl site. Additionally, Cipher has secured an option to acquire a further 45,706 miners, equivalent to 8.7 EH/s, in 2024.
Page highlighted the strategic significance of this purchase, noting that it enables Cipher to fix the price of mining rigs at a highly competitive rate of $14 per terahash (TH). He remarked:
“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.”
This move reflects Cipher’s optimistic outlook on the Bitcoin market. In November 2023, the company reportedly signed an agreement to purchase a new site in Texas for $7 million, payable in newly issued common stocks. This site is expected to become operational in 2025 with a capacity of up to 300 MW.
Cipher’s strategy in 2023 has included aggressive investments in new crypto mining devices, including the purchase of 11,000 Canaan A1346 mining rigs in May.
Based in the United States, Cipher Mining became public in 2021 following a $2-billion merger deal with the Nasdaq-listed Good Works Acquisition Corp. As a subsidiary of Bitfury, a renowned cryptocurrency mining firm, Cipher Mining is part of a larger entity that has reportedly mined approximately 600,000 BTC, nearly 3% of all Bitcoin ever mined, as of March 2021. This latest investment underscores Cipher Mining’s commitment to scaling its operations and capitalizing on potential future growth in the Bitcoin market.