Cipher Mining, a publicly traded Bitcoin mining corporation, is significantly expanding its operations with a recent purchase of substantial cryptocurrency mining equipment. The company has entered into an agreement to acquire 37,396 Antminer T21 mining rigs from Bitmain, a leading Chinese cryptocurrency mining company. Announced on December 18, this new addition of mining equipment is projected to contribute 7.1 exahashes per second (EH/s) to Cipher's mining capacity. The company anticipates achieving full self-mining capabilities by the first half of 2025.
Cipher’s CEO, Tyler Page, expressed that this acquisition is a strategic step towards developing the company's first 135 megawatt (MW) power station at the newly acquired Black Pearl site. In addition to this purchase, Cipher has secured an option to buy an additional 45,706 mining rigs in 2024. This prospective acquisition would add another 8.7 EH/s to Cipher’s mining capacity. Page highlighted the advantageous nature of the deal, securing the mining equipment at a cost of $14 per terahash (TH), which he believes positions Cipher favorably ahead of a potential Bitcoin bull run.
Cipher's latest investment reflects its strong confidence in the future of the Bitcoin market. In November 2023, the company reportedly finalized a deal to acquire a new site in Texas for $7 million, payable in newly issued common stock. Expected to be operational by 2025, this site boasts a potential capacity of up to 300 megawatts.
2023 has been a year of aggressive expansion for Cipher in terms of acquiring new cryptocurrency mining equipment. The company purchased 11,000 Canaan A1346 mining rigs in May, further bolstering its mining capabilities.
Cipher Mining became a public entity in 2021 following a $2 billion merger agreement with Good Works Acquisition Corp, a company listed on Nasdaq. As a subsidiary of Bitfury, a notable player in the cryptocurrency mining industry, Cipher is part of a larger enterprise that has mined approximately 600,000 BTC — nearly 3% of all Bitcoin mined as of March 2021.
