Cipher Mining Announces Acquisition of New 300 MW Data Center Site in West Texas

Rhea-AI Summary

Cipher Mining Inc. (NASDAQ: CIFR) has announced the acquisition of a new 300 MW data center site in West Texas for $67.5 million plus a variable fee. The 250-acre site includes a newly constructed high-to-mid voltage substation, necessary approvals, and agreements for ERCOT market participation. This acquisition expands Cipher's data center portfolio to over 2.5 GW across 10 sites, positioning the company as a potential leader in large-scale data center operations. The site is suitable for both HPC infrastructure and bitcoin mining. Cipher expects to close the transaction in September, following due diligence completion.

Positive

• Acquisition of a 300 MW data center site with immediate availability
• Expansion of data center portfolio to over 2.5 GW across 10 sites
• Site includes a newly constructed, fully energized high-to-mid voltage substation
• Versatility of the site for both HPC infrastructure and bitcoin mining
• All necessary regulatory approvals and contracts already in place

Negative

• Significant cash outlay of $67.5 million for the acquisition
• Additional variable fee of $3/MWh for the first five years after site energization

The immediately available 250-acre site includes a newly constructed high-to-mid voltage substation, approvals for 300 MW, and agreements necessary to participate in the ERCOT market

New site is equally well-suited for HPC infrastructure and bitcoin mining

Company’s aggregate data center portfolio now exceeds 2.5 GW

NEW YORK, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced it has entered into a term sheet to acquire a new site in West Texas for a cash payment of $67.5 million and a variable fee of $3/MWh for the initial five years after the energization of the site.

The site features 300 MW of front-of-the-meter capacity, a newly constructed, fully energized, high-to-mid voltage substation, and all necessary regulatory approvals and contracts. As part of the transaction, Cipher will also acquire the 250 acres of land surrounding the substation and agreements necessary to participate in the ERCOT market. The Company is completing due diligence on the site and expects to close the transaction in September.

“We are thrilled to add another high-quality site to our growing portfolio. Large-scale data center opportunities that are immediately available and have an existing high-quality substation are particularly rare and desirable in today’s market. Cipher’s unique abilities to build both HPC infrastructure and best-in-class bitcoin mining operations give us multiple options to maximize the value of this site. With this acquisition and other recently announced purchases, Cipher’s portfolio will grow to more than 2.5 GW across 10 sites, and we are on a path to become one of the largest builders and operators of large-scale data centers in the world,” said Tyler Page, Cipher’s CEO.

About Cipher

Cipher is an emerging technology company focused on the development and operation of bitcoin mining data centers. Cipher is dedicated to expanding and strengthening the Bitcoin network's critical infrastructure. Together with its diversely talented team and strategic partnerships, Cipher aims to be a market leader in bitcoin mining growth and innovation. To learn more about Cipher, please visit https://www.ciphermining.com/.

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations regarding our future results of operations and financial position, business strategy, timing and likelihood of success, potential expansion of and additional bitcoin mining data centers, expectations regarding the operations of mining centers, and management plans and objectives, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and our management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 5, 2024, and in Cipher’s subsequent filings with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:
Investor Contact:
Josh Kane
Head of Investor Relations at Cipher Mining
josh.kane@ciphermining.com

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com

FAQ

What is the capacity of the new data center site acquired by Cipher Mining (CIFR)?

The new data center site acquired by Cipher Mining (CIFR) in West Texas has a capacity of 300 MW.

How much did Cipher Mining (CIFR) pay for the new West Texas data center site?

Cipher Mining (CIFR) is paying $67.5 million in cash for the site, plus a variable fee of $3/MWh for the initial five years after the site's energization.

What is the total capacity of Cipher Mining's (CIFR) data center portfolio after this acquisition?

After this acquisition, Cipher Mining's (CIFR) aggregate data center portfolio will exceed 2.5 GW across 10 sites.

When does Cipher Mining (CIFR) expect to close the transaction for the new West Texas site?

Cipher Mining (CIFR) expects to close the transaction for the new West Texas site in September 2024, after completing due diligence.