Cipher Mining Inc. (NASDAQ: CIFR) announced significant upgrades to its mining fleet for both 2024 and 2025, with a new 2024 year-end self-mining hash rate target of approximately 13.5 EH/s and a fleet efficiency of around 18.6 J/TH. The company also revealed a new 2025 year-end self-mining hash rate target of about 35 EH/s with a fleet efficiency of approximately 15 J/TH.
The upgrades include amending an existing December 2023 Bitmain contract to accelerate delivery, with the expectation that rigs will arrive in the fourth quarter of 2024 instead of the second quarter of 2025. Additionally, Cipher Mining has upgraded the machines to Bitmain’s most efficient S21 Pro mining rigs.
In addition to the amended contract with Bitmain, the company has entered into a new agreement with Canaan to purchase approximately 1.25 EH/s of its latest generation A1566 miners for delivery in the fourth quarter of 2024. Cipher Mining has also secured an option to purchase an additional 160 MW worth of Canaan’s next-generation miners when they become available in 2025, with pricing locked in near current A1566 prices.
Tyler Page, CEO of Cipher Mining, stated, "By accelerating delivery of latest-generation machines from Bitmain and entering a new purchase and option agreement with Canaan, we can immediately upgrade the less-efficient mining rigs at our Odessa site. This will significantly increase our fleet efficiency and production right away and still preserve the ability to build our Black Pearl data center in 2025 with leading-edge equipment."
Page added, "Our ability to upgrade our fleet opportunistically illustrates the benefits of owning and operating a collection of world-class data centers. By securing sites with attractive electrical interconnection opportunities and transforming them into best-in-class data centers that we can update over time, we continue to create value for Cipher shareholders."
Cipher Mining Inc. is an emerging technology company focused on the development and operation of Bitcoin mining data centers. The company aims to be a market leader in Bitcoin mining growth and innovation. Following these announcements, the company's shares moved 3.7%, and are now trading at a price of $4.18. For the full picture, make sure to review Cipher Mining's 8-K report.
