According to an 8-K form provided by the US Securities and Exchange Commission (SEC) on Monday, Cipher Mining will buy between 28,000 and 56,000 next-generation bitcoin miners from Bitfury for $ 6,250 per install.
At a maximum cost of $ 6,250 per machine, Cifre’s Bitcoin mining costs can range from $ 175 million to $ 350 million, depending on whether the company decides to receive all 56,000 rigs as stated in the purchase agreement.
The complete warehouse order will be shipped in seven installments monthly from summer 2022 to December 2022.
As part of the SEC application, Cipher Mining will pay an upfront fee of $ 10 million within three business days of the implementation of the mega-order launch agreement.
As Cointelegraph previously reported, Cipher Mining is set to reach 745 megawatts of bitcoin mining power by the end of 2025.
In March, the company struck a $ 2 billion merger with Nasdaq-listed Good Works Acquisition Corp., a specialized acquisition company (SPAC).
Cipher Mining is also backed by investors such as Fidelity Management and Research and Counterpoint Group Morgan Stanley.
On the subject: Northern Data acquires 33 thousand ASIC miners through the acquisition of Bitfield
The company’s planned spending on Bitcoin mining rigs is in line with the policy of rapidly expanding North American cryptocurrency mining companies.
Cryptocurrency mining companies in the US have acquired multiple rigs from major manufacturers such as Bitmain and MicroBT.
According to the Cambridge Bitcoin Electricity Consumption Index, the US currently accounts for over a third of the global BTC hashrate distribution.
Cipher Mining Technologies Inc. entered into a major supply and service agreement with blockchain giant Bitfury to purchase Bitcoin mining rigs (BTC).