Cipher Mining Bolsters Bitcoin Mining Capabilities with 11,000 Rigs from Canaan, Eyes 8.2 EH/s Hashrate by Year-End

  • Sergey Maga
  • 10 May, 2023 14:07
Cipher Mining Bolsters Bitcoin Mining Capabilities with 11,000 Rigs from Canaan, Eyes 8.2 EH/s Hashrate by Year-End

In a strategic move to expand its Bitcoin mining operations, Cipher Mining (CIFR) has announced the purchase of 11,000 Bitcoin mining rigs from Canaan Inc. (CAN). This acquisition comes on the heels of Cipher achieving a 6 exahash per second (EH/s) computing power milestone.

The newly acquired Canaan model A1346 rigs are set to elevate Cipher’s computing power to an impressive 7.2 EH/s upon installation. Expected to be energized by the end of Q3, Cipher is ambitiously targeting a further increase to 8.2 EH/s by the close of the year.

This positive announcement has had a favorable impact on Cipher’s stocks, which saw a pre-market trading increase of over 6%, reaching $2.07 at the time of writing.

Interestingly, Cipher has managed to surpass its previously stated hashrate target of 5.7 EH/s for the end of Q1. The miner also reported a significant reduction in its net loss per share in Q1 2023 compared to the same period in the previous year, decreasing from $0.07 to $0.03.

As far as operational costs are concerned, Cipher expects an average electricity price of $0.027 per kilowatt hour (kWh). It has secured 96% of its capacity with fixed price agreements, a strategic move considering the soaring energy costs faced by other miners without such agreements in 2022.

This deal comes as a significant boost for Canaan, which had witnessed a slump in sales throughout the year, in a generally depressed market.

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