Back to main

Cipher Mining Bolsters Bitcoin Mining Capacity with 16,700 New Miners Ahead of Halving Event

Cipher Mining, a prominent player in the Bitcoin mining industry, has taken a significant step towards solidifying its position by acquiring 16,700 state-of-the-art Avalon A1466 miners.

These mining machines are set to be delivered in the second quarter, strategically timed to coincide with the highly anticipated Bitcoin halving event, expected in April.

This move underscores Cipher Mining’s ambition to emerge as a key player in the industry during this pivotal moment.

The purchase agreement was brokered with Canaan, the company responsible for manufacturing the Avalon A1466 miners, and involved a joint venture between Bear LLC and Chief Mountain LLC.

Cipher Mining holds a 49% stake in this joint venture, which will see the installation of half of these miners at the Bear facility and the remaining half at the Chief facility.

This expansion will contribute an additional 30 megawatts, equivalent to 1.25 exahashes per second (EH/s), to each of these mining centers.

Upon completion of this expansion, Cipher Mining’s total self-mining capacity will reach an impressive 8.4 EH/s.

The CEO of Cipher Mining, Tyler Page, emphasized the strategic importance of this acquisition, explaining that it positions the company for substantial growth, particularly in light of the Bitcoin halving event.

Historically, this event has been accompanied by a surge in Bitcoin’s price.

READ MORE: Record-Breaking Cryptocurrency Thefts in December 2023 Total Nearly $100 Million

Although the exact financial details of the 16,700 miner purchase were not disclosed, Cipher Mining expressed satisfaction with the favorable terms of the agreement, highlighting that the timing aligned with the market cycle for mining machines.

This isn’t the first time Cipher Mining has collaborated with Canaan. In the past, the company purchased a stack of Canaan machines, which performed admirably even in the scorching Texas summer heat, with temperatures reaching as high as 119 degrees Fahrenheit (48.3 degrees Celsius) in 2023.

In a separate transaction last year, Cipher Mining acquired 37,396 units of the latest Antminer T21 miners from Bitmain, amounting to a total investment of $99.5 million and adding 7.1 EH/s of self-mining capacity. However, delivery of these miners is expected in the first half of 2025.

Cipher Mining’s mining operations demonstrated consistent growth, with 465 BTC mined in December, marking a 7.4% increase from the previous month.

Currently, the company holds 796 BTC on its balance sheet, valued at approximately $34 million.

In terms of market performance, Cipher Mining’s share price (CIFR) experienced a remarkable rebound in 2023, surging by 638% from $0.56 to $4.13.

This impressive resurgence followed a challenging 2022 when CIFR plummeted by 88%.

With a current market capitalization of $1.01 billion, Cipher Mining is now trailing only behind Marathon Digital Holdings, Riot Platforms, CleanSpark, and Hut 8 Mining in the Bitcoin mining sector.

Discover the Crypto Intelligence Blockchain Council

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Read on Crypto Intelligence Investment Disclaimer