Cipher Mining Inc. (CIFR) is on the move, with its shares experiencing a significant surge following the announcement of a major acquisition. The company has finalized the purchase of a 300 MW data center site in West Texas, a strategic move that reinforces its position in the Bitcoin mining industry.
This acquisition, located at the Barber Lake site, cost Cipher $67.5 million in cash and includes a variable fee of $3 per MWh (megawatt hour) for the initial five years after the site becomes operational. The site boasts an impressive 300 MW capacity, a newly constructed high-to-mid voltage substation, and all the necessary regulatory approvals, making it ready for immediate use. Cipher has also secured 250 acres of land surrounding the substation and completed all necessary agreements to participate in the Electric Reliability Council of Texas (ERCOT) market.
Cipher’s CEO, Tyler Page, expressed enthusiasm about the acquisition, highlighting the site’s suitability for both hosting large-scale High-Performance Computing (HPC) customers and mining Bitcoin. He emphasized the rarity of such large-scale sites with established infrastructure, noting that multiple hyperscalers have already expressed interest in the facility.
To finance the majority of this acquisition, Cipher sold a portion of its Bitcoin treasury, demonstrating a commitment to strategic growth and expansion. This move underscores Cipher’s belief that the newly acquired site represents an even more valuable asset compared to its Bitcoin holdings, offering immediate availability, large-scale capacity, and potential for future expansion.
This acquisition, coupled with other recent purchases, positions Cipher to significantly expand its operations, with its portfolio expected to reach over 2.5 GW across 10 sites. This aggressive growth strategy reflects Cipher’s ambition to become a major player in the rapidly evolving Bitcoin mining landscape.
Cipher’s stock price reflected the positive sentiment surrounding the acquisition, rising 5.69% to $3.16 per share during Tuesday’s trading session.
