Cipher to Acquire New Site for $7 Million; Buys 1.2 EH/s of S21

The new site is anticipated to be operational in 2025, boasting a potential capacity of up to 300 megawatts.

Cipher Mining, one of the fastest-growing bitcoin mining operations in North America, said on Wednesday that it has secured a pre-order for 1.2 EH/s of Bitmain’s Antminer S21.

Based in Texas, the mining operator said in its third-quarter earnings release that it bought the equipment at a rate of $14/TH/s for delivery beginning in January 2024. This purchase follows a similar payment arrangement to that of Iris Energy and CleanSpark, wherein a portion of payments will be deferred until one year following the delivery of the last shipment batch.

Furthermore, Cipher has signed a purchase agreement to acquire a new Texas site. Cipher said the acquisition comes at a cost of $7 million, paid in newly issued common stocks. The site is anticipated to become operational in 2025, boasting a potential capacity of up to 300 megawatts.

Cipher currently manages a wholly-owned facility in Texas and three additional sites through joint ventures with WindHQ, a renewable energy producer. In the past quarter, Cipher’s proprietary hashrate reached 7.2 EH/s, primarily stemming from the fully-owned Odesey site.

According to Cipher’s earnings release, the Odesey site contributed $30 million to its total mining revenue in the third quarter, with an estimated cost of bitcoin production of $12,772 per BTC.

Throughout the year, Cipher has seen steady growth in its realized hashrate, which now stands at 6.61 EH/s. This positions Cipher as the sixth-largest public bitcoin mining operation in terms of realized proprietary hashrate.