Cipher Mining completes 40-megawatt wind powered site in Texas

Quick Take

  • Cipher Mining has finished deploying mining rigs in its 40-megawatt facility in Alborz, Texas.
  • The company also reported a net loss of $29.2 million in the second quarter, translating to $0.12 per share.

Bitcoin miner Cipher Mining has finished deploying mining rigs to its 40-megawatt wind powered facility in Alborz, Texas, representing about 1.3 exahash per second (EH/s) in hash rate.

The new site will be able to produce up to 5.7 bitcoin per day, the company said in its second-quarter results presentation.

"Against challenging cryptocurrency market conditions, our attractive bitcoin mining unit economics uniquely position us to move ahead successfully," said CEO Tyler Page.

The Alborz facility is Cipher's first site. The US-based miner has started shipping rigs to its second and third centers (Bear and Chief, in Texas), which have an initial capacity of 10 megawatts each and are expected to add a combined 0.6 EH/s to the company's hash rate.

Cipher is also preparing to start shipping miners soon to its 205-megawatt site in Odessa, Texas, and is scheduled to deploy them throughout the second half of 2022.

Looking ahead to 2023, Cipher is considering adding 200 megawatts at a facility in Andrews, Texas, co-located with a new solar farm. It is also looking at several possible sites with its joint venture partner WindHQ.

Cipher had a net loss of $29.2 million in the second quarter, translating to $0.12 per share.

The company said that it had no debt at a corporate level, other than its share of an equipment finance facility at its Alborz joint venture of approximately $11 million. Through Alborz LLC, a joint venture between Cipher Mining and WindHQ, the miner secured financing for the Alborz center through a $46.9 million loan from BlockFi in early May.

The miner scaled back its hash rate forecast for the beginning of 2023 from 7.5 EH/s last quarter to 6.9 EH/s.