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The American Bitcoin mining company intends to buy between 28,000 and 56,000 next-generation mining rigs.
According to a Form 8-K filing with the United States Securities and Exchange Commission (SEC) on Monday, Cipher Mining will purchase 28,000 to 56,000 next-generation Bitcoin mining hardware from Bitfury at a cost of $6,250 per rig.
Cipher’s Bitcoin mining hardware outlay could range between $175 million and $350 million at a maximum cost of $6,250 per machine, depending on whether the company chooses to receive all 56,000 rigs as stated in the purchase agreement.
The total inventory order will be delivered in seven monthly batches beginning in the summer of 2022 and ending in December 2022.
According to the SEC filing, Cipher Mining will pay a $10 million advance fee within three business days of signing the agreement to kickstart the massive order.
As previously reported, Cipher Mining has designs towards achieving a 745 megawatts Bitcoin mining capacity before the end of 2025.
In March, the company entered into a $2 billion merger with the Nasdaq listed Good Works Acquisition Corp — a special purpose acquisition company (SPAC).
Cipher Mining is also backed by investors like Fidelity Management and Research as well as the Morgan Stanley-affiliated Counterpoint Group.
The scale of the company’s planned expenditure for Bitcoin mining rigs is in keeping with the rapid expansion policies being pursued by crypto mining establishments in North America.
Crypto mining companies in the United States have been purchasing more mining rigs from major manufacturers such as Bitmain and MicroBT.
The United States now accounts for more than a third of the global BTC hash rate distribution, according to data from the Cambridge Bitcoin Electricity Consumption Index.
Cipher Mining Technologies Inc. has signed a Master Services and Supply Agreement with blockchain development giant Bitfury to buy Bitcoin (BTC) mining rigs.