Cipher Invests $99.5M to Buy 37K Bitmain Antminers for Web 3.0 Development

Cipher Mining Purchases Crypto Mining Devices

Publicly traded Bitcoin (BTC) mining firm Cipher Mining (CIFR) is ramping up operations with a new mega-purchase of cryptocurrency mining devices. On Dec. 18, Cipher announced an agreement to buy 37,396 units of Antminer T21 miners from Chinese crypto mining giant Bitmain. The new mining equipment is expected to deliver 7.1 exahashes per second (EH/s) of self-mining capacity by the first half of 2025.

Cipher CEO Tyler Page stated that the purchase will enable Cipher to construct its first 135 megawatts (MW) at the recently acquired Black Pearl site. Cipher also holds the option to acquire an additional 45,706 miners representing 8.7 EH/s in 2024.

The CEO noted that the purchase allows Cipher to lock the price for mining rigs at a “very attractive” rate of $14 per terahash (TH).

Cipher Mining’s Aggressive Investment in Bitcoin

Cipher Mining has made a bullish investment in the Bitcoin market, evidenced by their purchase agreement to acquire a new Texas site for $7 million in newly issued common stocks. The site is expected to become operational in 2025 and will have a potential capacity of up to 300 megawatts.

In May of 2023, Cipher bought 11,000 Canaan A1346 mining rigs, further demonstrating their commitment to the cryptocurrency. Cipher Mining was formed in 2021 after a $2 billion merger deal with the Nasdaq-listed Good Works Acquisition Corp. and is a subsidiary of the crypto mining firm Bitfury, which reportedly mined 600,000 BTC — or nearly 3% of all Bitcoin to be ever mined — as of March 2021.