Business
Cipher Mining Announces Agreement to Purchase 28,000 to 56,000 Bitfury Next Generation Mining Rigs
Delivery Expected to Begin in June 2022 and Extend Through December 2022 Agreement Brings the Aggregate Hashrate of Mining Rigs under Contract to Between
About this update from Cipher Digital Inc.
[{"type":"text","content":"Delivery Expected to Begin in June 2022 and Extend Through December 2022 Agreement Brings the Aggregate Hashrate of Mining Rigs under Contract to Between ~13.8 and 19.2 EH/s NEW YORK, Oct. 12, 2021 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”), a U.S.-based Bitcoin mining company, today announced that it has entered into an agreement with Bitfury Top HoldCo B.V. (“Bitfury”) to make monthly purchases between June and December 2022 of 4,000 to 8,000 Bitfury next generation mining rigs that will each produce approximately 195 TH/s of hashing power and consume approximately 6.3KWh to 6.5KWh of electrical power. In aggregate, upon delivery in accordance with the terms of the agreement, these mining rigs are expected to be capable of producing hashrate of approximately 5.4 EH/s to 10.9 EH/s. The agreement provides for a maximum purchase price of $6,250 per machine (approximately $32.05/TH). This agreement was executed under the framework of the seven-year Master Supply and Services Agreement between Bitfury and Cipher dated as of August 26, 2021 (the “MSSA”). Under the MSSA, Cipher has a right of first refusal to purchase certain equipment from Bitfury, including mining rigs, and therefore expects to have ongoing access to additional competitively priced machines for future data center deployments. “Signing this agreement is an important milestone as we build out a significant Bitcoin mining footprint in the United States,” said Tyler Page, CEO of Cipher. “We were able to secure these mining rigs at an attractive price and demonstrate the unique potential of our relationship with Bitfury.” Since becoming a publicly traded company at the end of August 2021, Cipher has entered into purchase contracts for mining rigs from three different major manufacturers (including Bitfury) for machines capable of generating an aggregate hashrate of up to approximately 19.2 EH/s. The majority of the mining rigs are scheduled to be delivered in the second half of 2022. “With these key purchase agreements in place, we look forward to meeting our goal of expanding and strengthening Bitcoin’s critical network infrastructure,” added Mr. Page. “Overall, as a newly formed public company, we continue to make great strides and are maintaining strong momentum across our business.” To learn more about Cipher, please visit http...