Cipher Mining Announces Acquisition of New 300 MW Data Center Site in West Texas
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.
Cipher Mining Inc. (NASDAQ: CIFR) ha annunciato l'acquisizione di un nuovo sito per un centro dati da 300 MW in Texas occidentale per 67,5 milioni di dollari, oltre a una commissione variabile. Il sito di 250 acri include una sottostazione elettrica di alta-media tensione recentemente costruita, approvazioni necessarie e accordi per la partecipazione al mercato ERCOT. Questa acquisizione espande il portafoglio di centri dati di Cipher a oltre 2,5 GW su 10 siti, posizionando l'azienda come un potenziale leader nelle operazioni su larga scala dei centri dati. Il sito è adatto sia per un'infrastruttura HPC che per il mining di bitcoin. Cipher prevede di chiudere la transazione a settembre, dopo il completamento della due diligence.
Cipher Mining Inc. (NASDAQ: CIFR) ha anunciado la adquisición de un nuevo sitio de centro de datos de 300 MW en el oeste de Texas por 67,5 millones de dólares más una tarifa variable. El sitio de 250 acres incluye una subestación eléctrica de alta a media tensión recién construida, las aprobaciones necesarias y acuerdos para la participación en el mercado ERCOT. Esta adquisición amplía la cartera de centros de datos de Cipher a más de 2.5 GW en 10 sitios, posicionando a la empresa como un posible líder en operaciones de centros de datos a gran escala. El sitio es adecuado tanto para infraestructura HPC como para minería de bitcoin. Cipher espera cerrar la transacción en septiembre, tras la finalización de la due diligence.
사이퍼 마이닝 인크. (NASDAQ: CIFR)가 텍사스 서부에 위치한 300 MW 데이터 센터 사이트를 6천7백5십만 달러와 변동 수수료로 인수했다고 발표했습니다. 250 에이커 규모의 이 사이트에는 새로 건설된 고압에서 중압의 변전소, 필요한 승인, 그리고 ERCOT 시장 참여에 대한 계약이 포함되어 있습니다. 이번 인수로 사이퍼의 데이터 센터 포트폴리오는 총 2.5 GW 이상으로 확대되어 대규모 데이터 센터 운영의 잠재적 선두주자로 자리 잡았습니다. 이 사이트는 HPC 인프라와 비트코인 채굴 모두에 적합합니다. 사이퍼는 실사가 완료된 후 9월에 거래를 마무리할 계획입니다.
CIPHER Mining Inc. (NASDAQ: CIFR) a annoncé l’acquisition d’un nouveau site de centre de données de 300 MW au Texas occidental pour 67,5 millions de dollars, plus des frais variables. Le site de 250 acres comprend une sous-station de haute à moyenne tension récemment construite, les approbations nécessaires et des accords pour la participation au marché ERCOT. Cette acquisition élargit le portefeuille de centres de données de Cipher à plus de 2,5 GW sur 10 sites, plaçant l'entreprise comme un potentiel leader dans les opérations de centres de données à grande échelle. Le site convient à la fois à l'infrastructure HPC et au minage de bitcoins. Cipher prévoit de finaliser la transaction en septembre, après l'achèvement de la due diligence.
Cipher Mining Inc. (NASDAQ: CIFR) hat den Erwerb eines neuen 300 MW Rechenzentrumstandorts in Westtexas für 67,5 Millionen Dollar zuzüglich einer variablen Gebühr angekündigt. Das 250 Hektar große Gelände umfasst eine neu errichtete Hoch- bis Mittelspannungs-Umspannanlage, notwendige Genehmigungen und Vereinbarungen zur Teilnahme am ERCOT-Markt. Mit dieser Akquisition erweitert Cipher sein Rechenzentrumsportfolio auf über 2,5 GW an 10 Standorten und positioniert das Unternehmen als potenziellen Marktführer im Bereich großflächiger Rechenzentrumsbetriebe. Der Standort eignet sich sowohl für HPC-Infrastruktur als auch für Bitcoin-Mining. Cipher rechnet damit, die Transaktion im September abzuschließen, nachdem die Due Diligence abgeschlossen ist.
- 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
- Significant cash outlay of $67.5 million for the acquisition
- Additional variable fee of $3/MWh for the first five years after site energization
Insights
This acquisition marks a significant expansion for Cipher Mining, boosting their data center portfolio to over 2.5 GW across 10 sites. The
Cipher's expansion into West Texas is a shrewd move, capitalizing on the region's favorable energy landscape. The site's integration with the ERCOT market is particularly noteworthy, potentially allowing Cipher to benefit from Texas's deregulated electricity market. This could lead to more competitive energy rates and the ability to participate in demand response programs, enhancing operational flexibility. The 300 MW capacity is substantial, providing ample room for growth. However, investors should be aware of the volatility in Texas's energy market, as seen during recent extreme weather events. Cipher's ability to navigate these challenges will be important for the site's long-term success.
The acquisition of this 250-acre site with a newly constructed substation is a significant asset for Cipher. The flexibility to support both HPC infrastructure and bitcoin mining operations is a strategic advantage, allowing Cipher to adapt to market demands. The front-of-the-meter capacity of 300 MW is impressive and positions Cipher as a major player in the data center space. However, the rapid expansion to 2.5 GW across 10 sites raises questions about operational scalability and management. Investors should monitor Cipher's ability to efficiently operate and maintain this growing portfolio, as well as its strategy for balancing HPC and bitcoin mining operations to maximize returns.
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
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)?
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When does Cipher Mining (CIFR) expect to close the transaction for the new West Texas site?
