Business News Report
January 04, 2024

Cipher Mining Purchases 16,700 New Mining Machines Ahead of Bitcoin Halving

In Brief

Cipher Mining acquired 16,700 new Avalon A1466 mining machines from Canaan, thereby increasing its total Bitcoin mining capacity to 8.4 EH/s.

Cipher Mining Purchases 16,700 New Mining Machines Ahead of Bitcoin Halving

Bitcoin mining company Cipher Mining acquired 16,700 new mining machines from the computing equipment production company Canaan. The latest generation of Avalon A1466 mining machines is set to be  installed at the company’s Bear and Chief Mountain mining sites in Texas, thereby increasing its total self-mining capacity to 8.4 EH/s.

The purchase terms were negotiated between joint venture firms Bear LLC, Chief Mountain LLC, where Cipher holds a 49% interest, and Canaan. 

Cipher and its joint venture partner plan to evenly distribute the newly acquired miners, installing half at the Bear facility and the remaining half at the Chief facility, resulting in a 30-megawatt expansion, equivalent to 1.25 EH/s, at each mining center.

“We are excited to once again partner with Canaan for our 60 MW expansion at our Bear and Chief facilities. The Canaan machines we purchased last year are among the top-performing rigs in our fleet, especially in the hot summer months in Texas. Our relationship with Canaan has been great, and we look forward to future dealings with their team,” said Tyler Page, chief executive officer of Cipher Mining in a written statement.

This marks Cipher’s second purchase of machines from Canaan, after the chief executive officer was satisfied with the machines’ performance under the conditions of hot summer. Last year, Cipher acquired 37,396 units of the latest Antminer T21 miners from Bitmain.

The total expenditure for this purchase amounted to $99.5 million, reflecting a self-mining capacity of 7.1 EH/s. Currently, the firm holds 796 BTC on its balance sheet, valued at $34 million.

Bitcoin Mining Firms Boost Operational Efficiency

In anticipation of the upcoming Bitcoin halving event, where mining rewards are reduced by half, Bitcoin mining companies are strategically gearing up for increased operational efficiency by acquiring advanced mining machines. 

Recently, Hive Digital Technologies revealed the acquisition of 7,000 Antminer S21 machines from Bitmain, a cryptocurrency mining server manufacturer. These machines are scheduled for delivery between January and June 2024. Upon installation, Hive Digital anticipates an average energy efficiency of 25 J/TH and a computing power of 5.8 EH/s.

Cipher Mining’s new acquisition highlights strategic growth in the Bitcoin mining sector, as the industry anticipates the Bitcoin halving event.

Disclaimer

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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