Cipher Mining has acquired 16,700 new miners set for delivery in the second quarter, aiming to position itself as a leading beneficiary of the upcoming Bitcoin halving event in April. The mining firm plans to install the latest Avalon A1466 miners at its Bear and Chief Mountain facilities in Texas during Q2, boosting its self-mining capacity to 8.4 exahashes per second (EH/s). The purchase agreement was negotiated with Canaan, the seller of the Avalon A1466 miners, and involved a joint venture with Bear LLC and Chief Mountain LLC, where Cipher holds a 49% interest.
The mining partners intend to deploy half of the newly acquired miners at the Bear facility and the other half at the Chief facility, expanding each center by 30 megawatts (1.25 EH/s). Cipher Mining’s CEO, Tyler Page, emphasized that the timing of this acquisition aligns strategically with the Bitcoin halving event, known for its historical correlation with significant Bitcoin price increases. While the exact cost of the 16,700 miners was not disclosed, Cipher mentioned that the terms of the agreement were highly favorable.
This marks Cipher’s second collaboration with Canaan, following a previous purchase of machines. The new acquisition complements their existing mining capacity, with Page expressing satisfaction with the performance of Canaan machines in the Texas summer heat. In 2023, Cipher also bought 37,396 units of the latest Antminer T21 miners from Bitmain, totaling $99.5 million and representing 7.1 EH/s of self-mining capacity. However, these miners are scheduled for delivery in the first half of 2025.
Cipher Mining reported mining 465 BTC in December, a 7.4% increase from November, contributing to its total balance of 796 BTC valued at $34 million. The company experienced significant stock price growth in 2023, with CIFR bouncing back by 638% from $0.56 to $4.13. This recovery followed a challenging 2022, where CIFR fell by 88%. Currently, Cipher’s market cap stands at $1.01 billion, making it one of the leading companies in the crypto mining sector, trailing only behind Marathon Digital Holdings, Riot Platforms, CleanSpark, and Hut 8 Mining.
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