Cipher Scales BTC Mining Operation with 37,000 Bitmain Antminers Worth $100M

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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December 17, 2023

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NASDAQ-listed Bitcoin mining firm Cipher Mining Inc. has announced the purchase of 37,396 units of the latest Bitmain Antminer T21 series.

Making the announcement in a press release, the company disclosed that this acquisition amounted to approximately $99.5 million.

Regarding the value of these cutting-edge miners, Cipher Mining explained that each miner offers a substantial 7.1 EH/s of self-mining capacity. The fleet of miners is expected to be delivered in the first half of 2025.

$CIFR NEW YORK, Dec. 18, 2023 (GLOBE NEWSWIRE)
Cipher Mining announced today that it has entered into an agreement with Bitmain to purchase 37,396 units of the latest generation Antminer T21 miners, representing 7.1 EH/s of self-mining capacity to be delivered in the first half… pic.twitter.com/Y67hbsRUdu

— 𝒰𝓂𝒷𝒾𝓈𝒶𝓂 (@Umbisam) December 18, 2023

Additionally, the company disclosed that an option to acquire an additional 45,706 Antminers, representing 8.7 EH/s, has been secured with the Bitmain company. This latest fleet of miners will be delivered in 2024.

Cipher Mining’s CEO, Tyler Page, highlighted that the expansion of Bitcoin mining operations aligns with the company’s goal of establishing its first 165 megawatts per hour (MWh) facility at the newly acquired Black Pearl site by 2025.

Page emphasized that Cipher’s custom software and operations stack, coupled with attractive pricing dynamics in the ERCOT market, would allow them to maximize profits using the T21 series of miners.

He also shared that the investment in such a large amount of Bitmain Antminers has been spurred at the inexpensive rate they come at. According to Page, Cipher was able to lock in the price of the mining rigs at a very “attractive $14/TH,” which makes it more viable to capitalize on the anticipated Bitcoin bull run in the coming year.

Cipher Mining has been strategically positioning itself for a potential Bitcoin bull run since the beginning of 2023.

In the first quarter, the company secured the purchase of 11,000 mining rigs from Canaan, which came with a 6 EH/s self-mining capacity.

This move, announced in early May 2023, brought the company’s total mining capacity to 7.2 EH/s, with over 70,000 mining rigs in its portfolio.

The company, which went public through a $2 billion merger deal in 2021, also acquired a Texas mining site in November 2023 for $7 million. The site is expected to become operational by 2025, boosting Cipher Mining’s total capacity to 300 MWh.

Tether Also Eyeing Bitcoin Mining Treasures

Tether, a prominent issuer of the USDT stablecoin, is also venturing into the realm of Bitcoin mining, as revealed by a Bloomberg report. The company is committing to a three-year mining roadmap with a substantial investment of $500 million.

According to the stablecoin maker, the funds would be allocated to creating crypto mining sites and buying stakes in mining operations.

Shedding light on the company’s next focus in the crypto ecosystem, Paolo Ardoino, the newly appointed CEO, stated that Tether is evolving from a crypto financial service provider to Bitcoin infrastructure support.

The company’s focus also includes utilizing renewable energy for mining the proof-of-work (PoW) coin and leveraging the capabilities of its Moria mining software.

Tether more and more is establishing itself as real world infrastructure provider.

From finance ( $USDt innovation and #bitcoin infrastructure support ), energy (renewable energy studying and investment, #bitcoin mining, Moria mining software), communications ( Holepunch and…

— Paolo Ardoino 🤖🍐 (@paoloardoino) December 10, 2023

In addition, Tether is branching out into communications and artificial intelligence (AI) as it seeks to create resilient and community-driven products for the future.