Cipher Mining Purchases 16,700 New Mining Machines Ahead of Bitcoin Halving
The next Bitcoin halving event is set to take place in April this year. Cipher Mining, a Bitcoin mining firm, has signed a contract to purchase new Avalon miners units near the halving date. As per the official records, the firm has decided to purchase 16,700 new mining units that are set to be delivered during the second quarter of 2024. The firm has noted that it intends to be one of the winners in the industry during the Bitcoin halving event.
Mining Capacity Expansion
The firm has booked around A1466 mining units that are set to be installed on Bear and Chief Mountain during the second quarter of 2024. Following the new installation, the total self-mining capacity of the firm will reach 8.4 exahashes per second. Cipher is purchasing the new Avalon mining units from Canaan.
Cipher has a 49% stake in the joint venture of Bear LLC and Chief Mountain LLC. On this account, the firm has opted to distribute the new mining machines equally at both locations. Cipher Mining CEO Tyler Page noted that the purchase of new miners was timed with the Bitcoin halving event.
Cipher Mining CEO Discloses Agreement Details
Page has noted that the acquisition of the new mining units will warrant strong growth. Furthermore, the executive noted that Cipher will come out stronger following the new installation.
Cipher has not disclosed the cost of 16,700 mining units but claimed that the agreement was made on very favorable terms. Page stated that the firm is excited to finalize the deal at this point in the machine market. Cipher has placed a second order from Canaan.
Page shared that he was positive about the performance of the first batch of Canaan mining units during summer time. At the time of installation, the temperature of installation locations was raised to 119 Fahrenheit or 48.3 Celsius.
Cipher purchased 37,396 units of the latest generation Antminer T21 units from Bitmain in 2022. The agreement indicates a $99.5 million agreement that generated 7.1 EH/s self-mining power. These units will be delivered by the first half of 2025.
Cipher Mining’s Progress in 2023
Cipher Mining generated 465 Bitcoin during December last year. At present, the firm holds 796 Bitcoin on reserves valued at $34 million. CIFR, the ticker symbol for Cipher Mining indicates a 638% increase going from $0.56 to $4.13 during 2023.
At press time, the market cap of Cipher is $1.01 billion. Bitcoin halving is an event when Bitcoin mining rewards are slashed by 50%. The event takes place on every 210,000 block height or four years.
SunnySide Digital CEO, Taras Kulyk, noted that the decline of mining rewards will be covered by price momentum or transaction fees. He stated that in case of a different outcome, small mining operators will have to shut down. He says that miners will verify Bitcoin blockchain transactions as long as they have economic incentives.
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