Cipher Mining Buys 11,000 Crypto Mining Rigs From Canaan, Reaches 6 EH/s Hashrate

Cipher has an eye on hashrate of 8.2 EH/s by the end of the year.

AccessTimeIconMay 9, 2023 at 12:18 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cipher Mining (CIFR) announced the purchase of 11,000 bitcoin mining rigs from Canaan Inc. (CAN) after reaching 6 exahash/second (EH/s) of computing power, the firm said Tuesday.

The new Canaan model A1346 rigs will boost its computing power to 7.2 EH/s when installed, with energization expected by the end of Q3. Cipher says it has the potential reach 8.2 EH/s by the end of the year.

  • Why Worldcoin Is Launching a Layer 2
    20:07
    Why Worldcoin Is Launching a Layer 2
  • Polymarket Traders Bet on Fed Rate Cuts; Bitcoin Spot ETFs Register Five-Day Withdrawals Streak
    02:17
    Polymarket Traders Bet on Fed Rate Cuts; Bitcoin Spot ETFs Register Five-Day Withdrawals Streak
  • Base Monthly Active Addresses Increased by 160% in March: Nansen
    00:50
    Base Monthly Active Addresses Increased by 160% in March: Nansen
  • Bitcoin Halving: We Answer Your Questions
    04:16
    Bitcoin Halving: We Answer Your Questions
  • At the time of writing, Cipher's stock was up over 6% at $2.07 in pre-market trading.

    The miner slightly overshot its previously stated hashrate target of 5.7 EH/s for the end of Q1. Meanwhile, its net loss per share fell by more than half in Q1 2023 compared to the same period last year; to $0.03 from $0.07.

    The miner expects an average price of $0.027 per kilowatt hour (kWh) of electricity across its portfolio, with 96% of its capacity secured by fixed price agreements. Other miners without fixed price agreements saw soaring costs in 2022 due to the energy crisis.

    Canaan saw its sales dwindle throughout the year, outcompeted by other manufacturers while the market overall was depressed.

    Edited by Parikshit Mishra.



    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.