Cipher Mining Boosts Capacity with 16,700 New Bitcoin Miners

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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January 3, 2024

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Prominent Bitcoin (BTC) mining firm Cipher Mining has acquired 16,700 new mining rigs, aiming to position itself as one of the leading players in the industry following the anticipated Bitcoin halving event in April. 

The company plans to install these state-of-the-art Avalon A1466 miners at its Bear and Chief Mountain facilities in Texas during the second quarter, thereby increasing its total self-mining capacity to 8.4 exahashes per second (EH/s).

The deal was struck between Cipher Mining’s joint venture partners, Bear LLC and Chief Mountain LLC, and the mining equipment manufacturer Canaan, responsible for selling the Avalon A1466 miners.

Today $CIFR announced a 60 MW expansion at our Bear and Chief JV data centers, along with the purchase of 16k+ new miners from Canaan for delivery in the second quarter, bringing our expected total self-mining capacity to ~8.4 EH/s. More here: https://t.co/tRPa3sImWH

— Cipher Mining (@CipherInc) January 3, 2024

Cipher holds a 49% interest in the joint venture, with plans to distribute the newly acquired miners evenly between the Bear and Chief facilities.

This expansion will result in an additional 30 megawatts of power capacity, equating to 1.25 EH/s, at each mining center.

Cipher Mining CEO Tyler Page said that the timing of the purchase was strategically aligned with the Bitcoin halving event. 

This event, which occurs approximately every four years, involves halving the mining rewards to control the rate of new coin issuance. 

Historically, Bitcoin’s price has experienced significant growth following the halving event.

“These expansions […] position us for strong growth, and I expect Cipher to be one of the industry winners coming out of the halving.”

Cipher Mining Did Not Disclose Cost of Mining Rigs

The company did not disclose the specific cost of the 16,700 miners but confirmed that the terms of the agreement were highly favorable.This is not the first time Cipher has collaborated with Canaan, as they previously purchased machines from the same manufacturer. Page highlighted the successful performance of Canaan machines during the scorching Texas summer last year, with temperatures reaching as high as 119 degrees Fahrenheit (48.3 degrees Celsius). In addition to the recent purchase, Cipher had acquired 37,396 units of the latest generation Antminer T21 miners from Bitmain in the previous year, further bolstering its mining capacity.Cipher Mining’s operational update for December revealed that the company mined 465 BTC during the month, marking a 7.4% increase compared to November. As of now, Cipher holds 796 BTC on its balance sheet, valued at approximately $34 million. The firm’s share price (CIFR) experienced a remarkable rebound in 2023, surging by 638% from $0.56 to $4.13. Currently, Cipher Mining boasts a market capitalization of $1.01 billion, placing it among the top five mining companies, including Marathon Digital Holdings, Riot Platforms, CleanSpark, and Hut 8 Mining.Aside from Cipher Mining, Tether has also ramped up its investment in the Bitcoin mining industry. The company has already allocated over $800 million this year for investments in various research-related fields, including Bitcoin.The stablecoin giant aims to reach 120 megawatts of mining capacity through its own operations by the end of 2023. By the end of 2025, the company projects a capacity of up to 450 megawatts. Likewise, in November, Paolo Ardoino, Tether’s incoming CEO, said that the company plans to invest approximately $500 million over the next six months.