Alborz, a joint venture between bitcoin miner Cipher (CIFR) and renewable energy firm WindHQ, received a two-year $46.9 million secured credit facility from crypto lender BlockFi Lending to buy crypto mining rigs, according to a press release.
- Proceeds will be used to buy Bitmain S19J Pro mining rigs for Alborz’s 40 megawatt (MW) data center in Texas that is powered by a 163MW wind energy source. Once the rigs are delivered, the mining facility will generate approximately 1.3 exahash per second (EH/s) of mining power.
- “This credit facility provides an attractive source of non-dilutive financing at the Alborz data center,” said Tyler Page, CEO of Cipher.
- The deal comes as debt financing has been hailed by Wall Street analysts as a positive catalyst for the miners, given it doesn’t dilute existing investors, unlike an equity raise.
- The annual filing also shows that Cipher has entered into mining purchase contracts to deliver hashrate of about 8.5 EH/s in 2022, based on agreed delivery schedules with Bitmain and SuperAcme and assuming timely deliveries. Of this mining power, Cipher is expected to own about 7.2 EH/s, with the remainder going to WindHQ.
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