Cipher Mining Announces the Signing of Option Agreements to Acquire 1.5 GW of Data Center Sites in West and North Texas
Cipher Mining Inc. (NASDAQ: CIFR) has announced the signing of option agreements to acquire three data center sites in West and North Texas from Juvo Energy. These sites, each with a targeted capacity of 500MW, are in the final stages of approval for interconnection. The company has secured options to lease or purchase 580 acres of land across the three locations.
The sites are suitable for both High-Performance Computing (HPC) and bitcoin mining operations. Cipher has a 24-month window to exercise these options, with the final purchase price dependent on the approved interconnection capacity. This strategic move expands Cipher's active portfolio and development pipeline to a total of 2.5 GW across 10 sites.
CEO Tyler Page highlighted the increasing demand from hyperscalers for large, quickly energizable sites. He emphasized that this early involvement in site development allows Cipher to access premium locations at lower costs and improve long-term supply chain and construction planning.
Cipher Mining Inc. (NASDAQ: CIFR) ha annunciato la firma di accordi di opzione per acquisire tre siti di data center nel Texas occidentale e settentrionale da Juvo Energy. Questi siti, ciascuno con una capacità target di 500MW, sono nelle fasi finali di approvazione per l'interconnessione. L'azienda ha ottenuto opzioni per affittare o acquistare 580 acri di terra in tutto il territorio dei tre siti.
I siti sono adatti sia per High-Performance Computing (HPC) che per operazioni di mining di bitcoin. Cipher ha un periodo di 24 mesi per esercitare queste opzioni, con il prezzo finale di acquisto che dipende dalla capacità di interconnessione approvata. Questa mossa strategica amplia il portafoglio attivo e la pipeline di sviluppo di Cipher a un totale di 2,5 GW in 10 siti.
Il CEO Tyler Page ha evidenziato la crescente domanda da parte degli hyperscalers per siti grandi e rapidamente energizzabili. Ha sottolineato che questo coinvolgimento precoce nello sviluppo dei siti consente a Cipher di accedere a posizioni di alta qualità a costi inferiori e di migliorare la pianificazione della catena di approvvigionamento e costruzione a lungo termine.
Cipher Mining Inc. (NASDAQ: CIFR) ha anunciado la firma de acuerdos de opción para adquirir tres sitios de centro de datos en Texas Oeste y Norte de Juvo Energy. Estos sitios, cada uno con una capacidad objetivo de 500MW, están en las etapas finales de aprobación para interconexión. La empresa ha asegurado opciones para alquilar o comprar 580 acres de tierra en los tres lugares.
Los sitios son adecuados tanto para operaciones de High-Performance Computing (HPC) como para minería de bitcoin. Cipher tiene una ventana de 24 meses para ejercer estas opciones, y el precio de compra final depende de la capacidad de interconexión aprobada. Este movimiento estratégico amplía el portafolio activo y la cartera de desarrollo de Cipher a un total de 2,5 GW en 10 sitios.
El CEO Tyler Page destacó la creciente demanda de los hyperscalers por sitios grandes y rápidamente energizables. Enfatizó que esta participación temprana en el desarrollo del sitio permite a Cipher acceder a ubicaciones premium a costos más bajos y mejorar la planificación de la cadena de suministro y de construcción a largo plazo.
Cipher Mining Inc. (NASDAQ: CIFR)가 Juvo Energy로부터 텍사스 서부 및 북부에 있는 세 개의 데이터 센터 사이트를 인수하기 위한 옵션 계약 체결을 발표했습니다. 각 사이트는 500MW의 목표 용량을 가지고 있으며, 현재 상호 연결 승인을 위한 최종 단계에 있습니다. 이 회사는 세 위치 전역에서 580 에이커의 토지를 임대 또는 구매할 수 있는 옵션을 확보했습니다.
이 사이트는 고성능 컴퓨팅(HPC) 및 비트코인 채굴 작업 모두에 적합합니다. Cipher는 이러한 옵션을 행사할 24개월의 기간을 가지며, 최종 구매 가격은 승인된 상호 연결 용량에 따라 달라집니다. 이 전략적 움직임은 Cipher의 활성 포트폴리오와 개발 파이프라인을 총 2.5 GW의 10개 사이트로 확장합니다.
CEO 타일러 페이지는 대규모의 빠르게 전력 공급 가능한 사이트에 대한 하이퍼스케일러들의 수요가 증가하고 있음을 강조했습니다. 그는 이른 시기에 사이트 개발에 참여함으로써 Cipher가 더 낮은 비용으로 프리미엄 위치에 접근하고, 장기적인 공급망 및 건설 계획을 개선할 수 있다고 강조했습니다.
Cipher Mining Inc. (NASDAQ: CIFR) a annoncé la signature d'accords d'option pour acquérir trois sites de centres de données au Texas Ouest et Nord de Juvo Energy. Ces sites, chacun avec une capacité ciblée de 500MW, sont dans les étapes finales d'approbation pour l'interconnexion. La société a sécurisé des options pour louer ou acheter 580 acres de terrain dans les trois lieux.
Les sites conviennent à la fois pour des opérations de High-Performance Computing (HPC) et de minage de bitcoin. Cipher a une fenêtre de 24 mois pour exercer ces options, le prix d'achat final dépendant de la capacité d'interconnexion approuvée. Ce mouvement stratégique élargit le portefeuille actif et le pipeline de développement de Cipher à un total de 2,5 GW sur 10 sites.
Le PDG Tyler Page a souligné la demande croissante des hyperscalers pour des sites vastes et rapidement énergisables. Il a souligné que cette implication précoce dans le développement des sites permet à Cipher d'accéder à des emplacements de premier choix à des coûts inférieurs, tout en améliorant la planification de la chaîne d'approvisionnement et de construction à long terme.
Cipher Mining Inc. (NASDAQ: CIFR) hat die Unterzeichnung von Optionsverträgen zur Übernahme von drei Rechenzentrum-Standorten in West- und Nordtexas von Juvo Energy bekannt gegeben. Diese Standorte, jeder mit einer geplanten Kapazität von 500 MW, befinden sich in den letzten Genehmigungsphasen für die Interkonnektionsgenehmigung. Das Unternehmen hat sich Optionen gesichert, um 580 Acres Land an den drei Standorten zu mieten oder zu kaufen.
Die Standorte eignen sich sowohl für High-Performance Computing (HPC) als auch für Bitcoin-Mining-Betriebe. Cipher hat ein 24-monatiges Zeitfenster, um diese Optionen auszuüben, wobei der endgültige Kaufpreis von der genehmigten Interkonnektionskapazität abhängt. Dieser strategische Schritt erweitert das aktive Portfolio und die Entwicklungspipeline von Cipher auf insgesamt 2,5 GW auf 10 Standorten.
CEO Tyler Page hob die steigende Nachfrage von Hyperscalern nach großen und schnell mit Energie versorgbaren Standorten hervor. Er betonte, dass diese frühe Beteiligung an der Standortentwicklung es Cipher ermöglicht, Zugang zu Premiumstandorten zu niedrigeren Kosten zu erhalten und die Planung der Lieferkette und des Baus langfristig zu verbessern.
- Expansion of data center capacity by 1.5 GW
- Strategic positioning in high-demand areas for hyperscalers
- Flexibility in site acquisition with 24-month option period
- Potential for both HPC and bitcoin mining operations
- Early involvement in site development process, potentially reducing costs
- Significant capital expenditure required for site acquisition and development
- Uncertainty in final purchase price due to dependence on approved interconnection capacity
- Potential risks associated with large-scale expansion in a volatile market
Insights
The signing of option agreements for 1.5 GW of data center sites in Texas represents a significant expansion opportunity for Cipher Mining. This move positions the company to potentially double its current capacity, bringing their total portfolio to 2.5 GW across 10 sites. The strategic location near transmission assets and the advanced stage of interconnection approval are critical factors that could accelerate development timelines.
The flexibility to develop these sites for either HPC (High-Performance Computing) or bitcoin mining operations provides Cipher with valuable optionality in a rapidly evolving market. This diversification strategy could help mitigate risks associated with cryptocurrency market volatility. The option to lease or purchase 580 acres of land also offers financial flexibility, allowing the company to optimize its capital allocation based on market conditions.
However, investors should note that these are option agreements, not firm commitments. The company has a 24-month window to exercise these options and the final purchase price will depend on the approved interconnection capacity. This structure allows Cipher to manage risk while securing potential growth opportunities, but it also means that the full 1.5 GW expansion is not guaranteed.
Cipher's strategic move to secure options on large-scale data center sites demonstrates foresight in addressing the growing demand from hyperscalers. The company's approach of getting involved earlier in the development process could yield significant competitive advantages:
- Reduced acquisition costs for premium sites
- Improved long-term visibility for supply chain management
- Enhanced construction planning capabilities
The targeted capacity of 500MW per site is substantial and aligns with the scale required by major cloud service providers and tech giants. This positions Cipher to potentially capture a larger share of the high-growth HPC market, which could provide more stable and predictable revenue streams compared to the volatile cryptocurrency mining sector.
However, the success of this strategy hinges on Cipher's ability to secure firm commitments from hyperscalers or other large-scale clients. The company will need to demonstrate its capability to deliver these massive projects on time and within budget to attract and retain such high-profile customers. Investors should monitor Cipher's progress in converting these options into firm projects and securing long-term contracts for the planned capacity.
Three sites featuring targeted capacity of 500MW each
Signed option to lease or purchase a total of 580 acres of land, with two sites located in North Texas and one site located in West Texas
Suitable for both HPC and bitcoin mining data centers
NEW YORK, Oct. 15, 2024 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced it has signed option agreements to acquire the recently announced three sites in West and North Texas from Juvo Energy.
The three sites are adjacent to transmission assets and in the final stages of approval for interconnection with 500 MW targeted capacity per site. Cipher will be able to exercise the option in the next 24 months to acquire the sites, including 580 acres of land to be either leased or purchased. The ultimate purchase price to exercise the options for the sites will be determined by the number of megawatts actually approved for interconnection. The three sites all have the necessary characteristics for development of HPC data centers or bitcoin mining operations.
“We have seen increasing demand from hyperscalers for large sites that can be energized within the next three years. By getting involved earlier in the development timeline and process, we can source valuable sites that most of our competitors cannot, spend less for premium sites and improve long-term visibility for our supply chain management and construction functions. These new sites give us tremendous optionality on the expansion of our HPC hosting business,” said Tyler Page, Cipher’s CEO.
With the addition of these new sites, Cipher’s active portfolio and development pipeline will total 2.5 GW across 10 sites.
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/.
About Juvo
Juvo Energy is a power infrastructure company focused on development of “powered land” sites across the country. Juvo has a growing, active portfolio of over 6 GW. To learn more about Juvo, please visit: https://www.juvo-energy.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 total capacity of the new data center sites Cipher Mining (CIFR) plans to acquire?
Where are the new data center sites for Cipher Mining (CIFR) located?
How much land is associated with Cipher Mining's (CIFR) new data center site options?
What is the timeframe for Cipher Mining (CIFR) to exercise the options on the new data center sites?
What will be the total capacity of Cipher Mining's (CIFR) portfolio after acquiring these new sites?
