Cipher Mining refuses to buy Bitfury miners

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Mining company Cipher Mining refused to buy Bitfury ASIC miners, which were supposed to be delivered this year. She will continue to use Bitmain and MicroBT equipment.

Last fall, the company made a pre-order for Bitfury miners, and quite a significant one – from 28,000 to 56,000 devices (the exact number is unknown). The maximum cost is $6,250, respectively, the transaction amount could reach $350 million. However, as Tyler Page, CEO of Cipher Mining, said, it was decided to refuse to purchase this equipment in order to maintain the “flexibility” of the company.

“We are confident that the upcoming market conditions may require maximum business flexibility, which is why we have decided to continue our work with Bitmain and MicroBT, but to phase out Bitfury mining equipment in 2022,” said CEO Cipher Mining.

By the end of the year, the company plans to buy 60,000 Bitmain ASIC miners and 27,000 MicroBT devices. After the delivery and installation of the equipment, the total hashrate of Cipher Mining will be 7.2 Eh/s. The contract with Bitfury is concluded for 7 years, so in the future Cipher Mining may well purchase equipment from this company. For example, if there is a shortage of ASIC miners on the market.

It should be noted that the decision to abandon Bitfury equipment will be quite expensive for Cipher Mining – as Wells Fargo experts calculated, the “terahash cost” for the company will increase by 10-11% and amount to $42.81. And this is considering that while Cipher Mining continues to invest in infrastructure – for 11 months of 2021 the company reported a net loss of $72 million.

In February, Bitfury Group announced the launch of a 28 MW cryptocurrency mining data center in Canada.

Source: Bits

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