Cipher Mining Plans To Buy 56 Thousand Rigs For Bitcoin Mining, Targets IDR 4.95 Trillion In Revenue

JAKARTA - According to a Form 8-K filing with the United States Securities and Exchange Commission (SEC) on Monday, October 11, Cipher Mining will purchase 28,000 to 56,000 next-generation Bitcoin mining hardware from Bitfury for US$6,250 (IDR 88 million) per rig.

With a maximum cost of $6,250 per machine, Bitcoin Cipher mining hardware expenditures could amount to between $175 million and $350 million, depending on whether the company chooses to accept all 56,000 rigs as stated in the purchase agreement.

Total inventory orders will be shipped in seven batches each month from summer 2022 to December 2022.

As part of the SEC filing, Cipher Mining will pay a follow-up fee of US$10 million within three business days of executing the agreement to initiate the massive order.

As previously reported by Cointelegraph, Cipher Mining is designed to reach 745 megawatts of Bitcoin mining capacity before the end of 2025.

In March, the company entered into a $2 billion merger with Nasdaq-listed Good Works Acquisition Corp - a special purpose acquisition company (SPAC).

Cipher Mining is also supported by investors such as Fidelity Management and Research and Counterpoint Group which is affiliated with Morgan Stanley.

The scale of the company's planned spending on Bitcoin mining rigs is in line with the rapid expansion policy pursued by crypto mining companies in North America.

Crypto mining companies in the United States have acquired more rigs from big manufacturers like Bitmain and MicroBT.

According to data from the Cambridge Bitcoin Electricity Consumption Index, the United States now accounts for more than a third of the global BTC hash rate distribution.

Cipher Mining Technologies Inc. has signed a Major Services and Supply Agreement with blockchain development giant Bitfury to purchase Bitcoin (BTC) mining rigs.