Cipher Mining Announces Acquisition of New Site in West Texas, Adding 100 MW of Capacity to its Growing Portfolio of Power and Data Center Development Opportunities
Rhea-AI Summary
Cipher Mining has acquired a new site called Stingray in West Texas for $4.1 million plus a variable fee of $1.5/MWh for the first five years post-energization. The 250-acre site includes approvals and facilities for up to 100 MW of front-of-the-meter capacity, with power consumption expected to begin in the first half of 2026. The acquisition features a completed facility extension agreement with ONCOR and expands Cipher's total portfolio to 2.6 GW across 11 sites.
Positive
- Expansion of power capacity by 100 MW
- Strategic acquisition of 250 acres with existing regulatory approvals
- Portfolio growth to 2.6 GW across 11 sites
- Relatively low initial cash investment of $4.1 million
Negative
- Additional operational costs of $1.5/MWh for first five years
- Long wait time until power consumption begins (2026)
- Cash expenditure for non-immediately productive asset
Insights
This strategic acquisition significantly bolsters Cipher Mining's power capacity portfolio. The
The location in West Texas is particularly advantageous due to the region's competitive power rates and growing renewable energy infrastructure. The 250-acre land parcel provides ample space for future expansion beyond the initial 100 MW capacity. When integrated with Cipher's existing portfolio, this brings their total capacity to 2.6 GW, positioning them as a major player in the bitcoin mining infrastructure space.
This acquisition strengthens Cipher's competitive position in the bitcoin mining sector. The staggered energization timeline (2026 for this site) demonstrates a calculated approach to scaling operations in anticipation of future bitcoin halving events. The
The 100 MW capacity could support approximately 30,000 latest-generation bitcoin miners, potentially adding 3-4 EH/s to Cipher's hashrate depending on the mining equipment deployed. This expansion aligns with the industry trend of securing power infrastructure well in advance of deployment to maintain competitive advantages in the increasingly capital-intensive bitcoin mining sector.
The 250-acre site includes approvals and a signed facility extension agreement for up to 100 MW
Anticipated availability of power consumption in the first half of 2026
NEW YORK, Nov. 26, 2024 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced it has closed a transaction to acquire a new site in West Texas called Stingray for a cash payment of
The site features up to 100 MW of front-of-the-meter capacity and all necessary regulatory approvals, 250 acres of land adjacent to the transmission assets, and a completed facility extension agreement with ONCOR.
“We are very pleased to add the new 100 MW Stingray data center site to our expanding pipeline. With the addition of this site, we now have a data center scheduled to energize in 2026 that complements our other new data centers scheduled to energize in 2025 and 2027,” said Tyler Page, Cipher’s CEO.
With the addition of this new site, Cipher’s active portfolio and development pipeline will total 2.6 GW across 11 sites.
About Cipher
Cipher is focused on the development and operation of industrial-scale data centers for HPC hosting and bitcoin mining. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to the world's largest HPC companies. 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, such as, statements about our beliefs and expectations regarding our future results of operations and financial position, planned business model and strategy, timing and likelihood of success, capacity, functionality and timing of operation of data centers, expectations regarding the operations of data centers, potential strategic initiatives, such as joint ventures and partnerships, and management plans and objectives, are forward-looking statements and should be evaluated as such. 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, Cipher’s evolving business model and strategy and efforts we may make to modify aspects of our business model or engage in various strategic initiatives, 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 for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”), as any such factors may be updated from time to time in the Company’s other filings with the SEC, including without limitation, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024. 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:
Will Iwaschuk
Co-President
william.iwaschuk@ciphermining.com
Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com
FAQ
How much did Cipher Mining (CIFR) pay for the Stingray site in Texas?
What is the power capacity of Cipher Mining's new Stingray site?
When will Cipher Mining's Stingray site begin operations?
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