Key Takeaways
- Cipher Mining has purchased a $2.5 million site in Cotulla, Texas.
- The new site will add 70 MW of bitcoin mining capacity by 2026.
- Cipher Mining's total installed hashrate increased to 8 EH/s in May 2024.
Cipher Mining, a Texas-based bitcoin mining firm, has announced the purchase of a new site in Cotulla, Texas, for $2.5 million. The acquisition, revealed in the company’s May production update, will add at least 70 megawatts (MW) of capacity, expected to be available by 2026. The deal is set to be finalized in early July after due diligence.
CEO Tyler Page expressed optimism about the expansion, stating:
As we complete the expansion at Bear and Chief, we continue to grow our total self-mining capacity, which is now approximately 8 EH/s. With our power hedged at a low price, strong balance sheet, and continuing expansion plans, we expect to thrive in this post-halving environment.
Page also emphasized the importance of securing power assets as a key driver of value in the industry.
In May, Cipher Mining reported producing 158 BTC and an additional 8 BTC equivalent from power sales, with its installed hashrate reaching 8 exahashes per second (EH/s), up from 7.7 EH/s in April. The company sold 50 BTC, accounting for 30% of its bitcoin and bitcoin equivalent production during this period.
This acquisition follows Cipher’s previous investment in a 300 MW site in Texas, known as Black Pearl, reinforcing its strong presence in the region. The Cotulla site will significantly boost the company’s mining operations and highlights Texas as a growing hub for Bitcoin mining.
Cipher’s production and operations update for May highlighted strategic treasury management, ending the month with approximately 2,142 BTC. The company expects to benefit from high market prices during the hot summer months due to its ability to re-sell power secured under low fixed-price contracts.
