Cipher Mining seeks to raise up to $250 million in stock market offering

New York-based Cipher Mining aims to raise up to $250 million in a stock market offering of its common stock, a Sept. 21 regulatory filing shows.

The move comes as bitcoin miners struggle to make ends meet in a tough revenue environment characterized by high electricity costs, depressed bitcoin prices and mining rigs depreciating in value.

Broker H.C. Wainwright & Co. will work with Cipher to sell shares of its common stock through an "at the market" agreement, the filing said. This means that the shares will be sold at market price at the time of purchase. The broker will earn a commission of up to 3% of the gross proceeds from any sales. 

Cipher Mining recorded a net loss of $29.2 million in the second quarter, citing challenging conditions in the crypto market. The company recently finished adding mining rigs at its wind-powered facility in Alborz, Texas.

Crypto mining companies have been coping with the difficult market conditions by raising money through stock and equity deals, selling bitcoin and taking out loans. On Friday, Bitcoin miner Iris Energy said it solidified a $100 million equity purchase deal with B. Riley. Bitcoin mining hosting provider Compute North also filed for Chapter 11 bankruptcy protection this week.

Certain bitcoin miners are finding it hard to repay up to $4 billion in loans backed by machines that have decreased in value, Bloomberg reported in June.