Cipher Mining (CIFR) has raised its expectations for total hashrate capacity by 0.5 exahash/second (EH/s) for the remainder of the year, according to a report filed Tuesday with the U.S. Securities and Exchange Commission.
- In its annual earnings report for 2021, Cipher Mining had said it would provide a total of 8.5 EH/s by the end of 2022, with 7.2 EH/s coming from its own mining operations. The miner now expects to provide a total hashrate of 9 EH/s, of which 7.5 EH/s will go to its own mining operations.
- The increased hashrate is due to improved machine allocation by MicroBT, according to the documents. The company has contracts for 27,000 rigs with Bitmain and 60,000 rigs from MicroBT, CEO Tyler Page said in Tuesday's analyst conference call.
- Cipher is "in discussions" with virtually every mining rig manufacturer, including new entrants such as Intel, Page said.
- At the same time, Cipher Mining lowered its expectations for stream capacity. The company expected total capacity of 405 megawatts (MW) by the end of 2022, of which 305 MW would be from captive mining, but has now updated its forecast to 345 MW, of which 275 MW would be from captive mining, according to the filing.
- The filing indicates that Phase 2 development of Cipher Mining's Bear and Chief facilities has been delayed until 2023.
- However, the CEO said in Tuesday's conference call that the power capacity is more than sufficient to accommodate the machines planned for the entire year. The facilities could accommodate more mining equipment if the company finds the ability to buy it at competitive prices, he said.
- Cipher Mining closed its first loan to finance equipment purchases in early May, securing $46.9 million from BlockFi for its Alborz facility. The company believes lenders are and will continue to be satisfied with Cipher Mining's model given its low costs, despite unfavorable market conditions, Page said.
- Given the current contracts, the company expects power costs of $0.0273 per kilowatt-hour and machine costs of $45.01 per TH/s, according to the filing.
- The company believes that given the low costs, lenders are satisfied with Cipher Mining's model despite unfavorable market conditions and will continue to be so in the future, and anticipates several loan closings in the future.
- Shares of Cipher fell about 22% on Tuesday, while mining counterparts have recovered from the brutal sell-off, rising between 4% and 5% on average. Meanwhile, bitcoin has finally recovered, rising above $31,000.