Bitcoin Mining Companies Expand Their Operations
Date: 2024-01-23 Author: Dima Zakharov Categories: IN WORLD
Expanding Mining Capacities
In recent news, Cipher Mining Inc. and Stronghold Digital Mining have made substantial moves to bolster their mining operations. Cipher Mining Inc. has revealed plans to increase its mining capacity by approximately 1.2 EH/s.
Joint Ventures and Equipment Upgrades
These expansions are being facilitated through joint ventures, with Cipher partnering with WindHQ, an energy company, to expand its mining park. The two joint ventures are acquiring state-of-the-art mining equipment from Canaan.
Cipher Mining Inc. announced that its joint venture, Bear and Chief, has pre-ordered Canaan's Avalon A1466 Bitcoin miners at a competitive rate of 2.5 EH/s each. Alongside this equipment expansion, both joint ventures will increase their capacity by 30 megawatts each.
Shipping and Payment Terms
Shipments are expected to commence in the second quarter of 2024, and Cipher Mining Inc. has stated that the contract allows the joint ventures to pay up to 30% of the total amount owed within 90 days after delivery. While the exact contract cost remains undisclosed, Cipher's mining competitor, Stronghold Digital Mining, has secured an option to purchase Canaan A1466 miners.
Recent Acquisitions
Cipher's recent purchases of A1466 miners follow a preliminary order for Antminer T21 equipment from Bitmain, valued at $100 million. This equipment is set to go on sale in 2025 and will be connected to Cipher's new proprietary channel in Texas.
In December, Cipher mined 465 BTC, a 7.4% increase compared to November, thanks to the significant rise in Bitcoin transaction fees.
Stronghold's Acquisition
On the other hand, Stronghold Digital Mining has acquired 1,100 Avalon A1346 miners, with 2,000 previously purchased A1346 miners already installed at their Patha-Creek facility.
Greg Bird, Chairman and CEO of Stronghold, expressed their enthusiasm for expanding their partnership with Canaan through these acquisitions, highlighting the advanced technology of the A1466 miners. Bird emphasized the attractive price point, impressive hash rates, energy efficiency, and competitive pricing of these new machines.
These expansions signal the resilience and growth of the Bitcoin mining industry, as companies like Cipher Mining Inc. and Stronghold Digital Mining adapt to the evolving cryptocurrency landscape.
