Cipher Mining Expands Its Bitcoin Mining Capacity with Canaan Miners

Cipher Mining, a leading developer and operator of bitcoin mining data centers, has announced the purchase of 16,700 new miners from Canaan Inc., a Nasdaq-listed manufacturer of high-performance computing solutions. The deal, which was announced on January 3, 2024, will add about 2.5 exahashes per second (EH/s) of self-mining capacity to Cipher’s existing fleet of over 70,000 miners.

According to the press release, Cipher Mining has secured favorable pricing and payment terms for the latest generation Canaan A1466 miners, which offer an average efficiency of 38 joules per terahash (J/TH). The company expects to install the miners at its Bear and Chief facilities in Texas, which are jointly owned and operated by Cipher Mining and Bitfury Holding B.V.

Cipher Mining Expands Its Bitcoin Mining Capacity with Canaan Miners
Cipher Mining Expands Its Bitcoin Mining Capacity with Canaan Miners

Cipher Mining CEO Tyler Page said that the purchase of the new miners was part of the company’s strategy to invest opportunistically during the bitcoin mining cycle. He added that the company was able to negotiate attractive terms with Canaan, thanks to its strong balance sheet and long-term relationship with the supplier.

“We are very pleased to continue our partnership with Canaan, one of the world’s leading providers of high-performance computing solutions. By purchasing 16,700 of their latest generation A1466 miners, we are adding significant hash rate capacity to our fleet, while also improving our overall fleet efficiency. This will enable us to further increase our bitcoin production and profitability in 2024 and beyond,” Page said.

Cipher Mining Continues to Grow Its Bitcoin Mining Operations

The purchase of the new miners from Canaan is the latest in a series of expansion moves by Cipher Mining, which went public in 2021 after a $2 billion merger with Good Works Acquisition Corp., a special purpose acquisition company (SPAC). In December 2023, the company announced the acquisition of a new Texas-based site with interconnection up to 300 megawatts (MW), which is expected to come online in 2025. The site, dubbed Black Pearl, will host some of the Bitmain T21 miners that Cipher Mining bought in November 2023, adding another 7.1 EH/s of self-mining capacity.

Cipher Mining also completed the build-out of its Odessa data center in Texas in November 2023, achieving an all-time high self-mining hash rate capacity of up to 7.2 EH/s. The company installed 11,000 Canaan A1346 miners at the facility, which it purchased in May 2023. Cipher Mining also operates two other data centers in Texas, Rockdale and Sherman, as well as one in Ohio, Coshocton.

Cipher Mining’s total deployed rig count as of November 2023 was approximately 66,000, producing about 433 bitcoins in that month. The company’s current and contracted fleet, including the full purchase option of the Bitmain T21 miners, would bring its total hash rate in operation and under contract to 24.2 EH/s, with an overall potential fleet efficiency of 22.6 J/TH.

Cipher Mining Aims to Be a Market Leader in Bitcoin Mining Growth and Innovation

Cipher Mining is an emerging technology company that focuses on the development and operation of bitcoin mining data centers. The company’s mission is to expand and strengthen the Bitcoin network’s critical infrastructure, leveraging its diversely talented team and strategic partnerships. Cipher Mining aims to be a market leader in bitcoin mining growth and innovation, by deploying cutting-edge hardware, software, and operations solutions.

Cipher Mining is a subsidiary of Bitfury Top HoldCo B.V., a leading full-service blockchain technology company that delivers software and hardware solutions for governments, corporations, and individuals. Bitfury is also a major shareholder of Cipher Mining, holding about 12% of its outstanding shares as of September 30, 2023.

Cipher Mining’s common stock is traded on the Nasdaq Global Select Market under the symbol “CIFR”. As of January 3, 2024, the company had a market capitalization of about $1.35 billion, with a closing price of $5.26 per share.

Leave a Reply

Your email address will not be published. Required fields are marked *