Cipher Mining to Acquire Over 37,000 Bitcoin Miners from Bitmain

Cipher Mining, a prominent player in the cryptocurrency mining industry, has just sealed a groundbreaking agreement with Bitmain, a major Chinese mining equipment manufacturer. The deal involves the acquisition of a staggering 37,396 Antminer T21 units, boasting an impressive hash rate of 7.1 EH/s. These high-performance machines are scheduled for delivery in the first half of 2025. What's more, Cipher Mining holds the option to purchase an additional 45,706 devices with a power output of 8.7 EH/s in 2024.

Tyler Page, the CEO of Cipher Mining, expressed enthusiasm about the acquisition, stating, "By acquiring Bitmain's T21 mining rigs with a 7.1 EH/s performance, we can establish our initial 135 MW at our recently acquired Black Pearl facility. We also have the potential to acquire up to 8.7 EH/s of T21 in 2024. [...] If we choose to exercise the option, we will have enough mining rigs to support an additional 165 MW of infrastructure."

The machines are set to cost Cipher Mining $14 per TH/s, a competitive rate in the current market. As per Hashrate Index, similar devices with energy consumption below 25 J/TH are currently valued at $13.54 per TH/s. This strategic investment move has already borne fruit, with Cipher Mining's stock surging by 17.31% at the time of writing, pushing its price to $3.05.

Cipher Mining has been making significant strides in the cryptocurrency mining sector, having launched a 40 MW Bitcoin mining network in Texas in August 2022, powered by a wind farm. In the spring of 2023, the company announced the acquisition of 11,000 A1346 devices from Canaan, further solidifying its position in the industry.

This deal between Cipher Mining and Bitmain underscores the dynamic nature of the cryptocurrency mining landscape, as companies strive to secure their place in the ever-evolving world of digital assets.