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Cipher Mining Expands Texas Footprint With $2.5M Site Purchase

Cipher Mining Expands Texas Footprint With $2.5M Site Purchase

Jun 4, 2024
Bitcoin Mining

Cipher Mining Expands Texas Footprint With $2.5M Site Purchase

Cipher Mining, a Texas-based bitcoin mining firm, has announced its latest strategic move in the Lone Star state, purchasing a new site in Cotulla, Texas, for $2.5 million. The acquisition, revealed in the company's May production update, features at least 70 megawatts (MW) of capacity, which will, however, not be available until 2026. Cipher Mining expects to finalize the deal in early July following the completion of due diligence.

The company's CEO, Tyler Page, commented on the expansion, "As we complete the expansion at Bear and Chief, we continue to grow our total self-mining capacity, which is now approximately 8 EH/s. With our power hedged at a low price, strong balance sheet, and continuing expansion plans, we expect to thrive in this post-halving environment." Page further highlighted the importance of securing power assets, stating, "This acquisition demonstrates our continued ability to source attractive data center sites at reasonable prices and our focus on power assets as the key driver of value in our industry."

In the first full month following the recent bitcoin halving, Cipher Mining reported a production of 158 BTC and an additional 8 BTC equivalent from power sales. The company saw its nameplate installed hashrate increase to 8 exahashes per second (EH/s) by the end of May—up from 7.7 EH/s the previous month. Cipher Mining also disclosed the sale of 50 BTC during this period, which accounted for 30% of its bitcoin and bitcoin equivalent production.

The news follows Cipher's previous investment in a 300 MW site in Texas, dubbed the Black Pearl, further solidifying its foothold in the region. The newly announced site in Cotulla is poised to expand the company's mining operations and is indicative of the burgeoning interest in Texas as a hub for Bitcoin mining.

Cipher's production and operations update for May also underscored the company's strategic treasury management. It ended the month holding approximately 2,142 BTC, despite selling 50 BTC. "Given the hot weather forecast for the summer, and Cipher’s unique ability to re-sell power secured under contract at a low fixed price, the company expects to be well-positioned to benefit if high market prices materialize this summer," the company stated.

Cipher Mining Press Release


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