Cipher Mining Scraps Plan to Buy Bitfury Rigs, Sticks With Bitmain, MicroBT

Bitcoin miner Cipher Mining (CIFR) abandoned its program to bargain Bitfury rigs this year, saying it aims to beryllium much flexible, CEO Tyler Page said during a telephone with investors connected Friday.

• The New York-based institution had pre-ordered 28,000 to 56,000 mining rigs from Bitfury astatine a maximum terms of $6,250 per machine, according to a filing with the U.S. Securities and Exchange Commission from October. At maximum values, that brings the bid full to $350 million.

• "Given our content that upcoming marketplace conditions whitethorn warrant a premium connected flexibility, we person decided to proceed to propulsion guardant with our Bitmain and MicroBT contracts, but not Bitfury rigs for 2022 delivery," Page said.

• The miner's projected hashrate volition instrumentality a hit, but the institution volition beryllium "nimble and perchance seizure opportunities successful a accelerated moving market," Page said. Given volatile marketplace conditions and a shifting planetary landscape, outgo subject is vital, helium said.

• With the Bitmain and MicroBT purchases, the institution plans to person 7.2 exahash/second (EH/s) by year-end. It is nether declaration to bargain 60,000 rigs from Bitmain and 27,000 from MicroBT, Page said connected the call.

• The institution whitethorn bargain Bitfury machines successful the future. The declaration is "a 7 twelvemonth statement that provides flexibility fixed that we person a close of archetypal refusal connected machines," and a astir favored pricing arrangement, Page said during the call. When rigs are successful precocious request oregon hard to source, Cipher Mining tin workout its enactment to bargain rigs from Bitfury astatine a competitory price, Page said.

• If marketplace conditions are specified that the miner tin bargain rigs astatine "attractive prices" aboriginal this year, it expects to person the capableness to turn its hashrate by an further 1.9 EH/s by the extremity of the year.

• Because of the determination to bash distant with Bitfury rigs, Cipher Mining's terms per terahash has accrued 10%-11%, a Wells Fargo expert said during the call. Page said the flexibility it gives is important fixed that macro and manufacture factors are successful flux. Cipher volition beryllium paying $42.81 per terahash/second, according to the presentation.

• In February, Cipher Mining commenced mining astatine a 40 megawatt (MW) tract that is 100% powered by upwind energy, according to the capitalist presentation. It signed a back-to-back purchasing powerfulness statement with a upwind farm, and doesn't person a grid connection, meaning it cannot merchantability excess powerfulness backmost to the grid, the CEO said. Cipher Mining besides signed a non-binding word expanse for a 200MW tract with Luminant, a subsidiary of New York-listed Vistra, including a 15-year woody of vigor supply, according to the presentation.

• The miner has yet to publication gross from bitcoin mined, and alternatively reported a $72 cardinal nett nonaccomplishment for the 11 months ending Dec. 31, 2021.

• Cipher Mining expects to walk $0.0273 per kilowatt hr for the adjacent 5 years, the capitalist presumption said.