US-based crypto and Bitcoin mining firm Cipher Mining has acquired a site in West Texas for a cash payment of $67.5 million.
The acquisition included a variable fee of $3/MWh for the initial five years after the energization of the site.
The 250-acre site has a capacity of 300MW and a newly constructed high-to-mid voltage substation.
The transaction is expected to close next month.
“We are thrilled to add another high-quality site to our growing portfolio. Large-scale data center opportunities that are immediately available and have an existing high-quality substation are particularly rare and desirable in today’s market. Cipher’s unique abilities to build both HPC infrastructure and best-in-class bitcoin mining operations give us multiple options to maximize the value of this site.” said Tyler Page, Cipher’s CEO.
Just last month, reports said Cipher was exploring a potential sale after receiving interest from companies looking to boost computing capabilities.
Cipher currently has 75,000 deployed mining rigs, according to the company’s June 2024 Operational Update. It has listed two sites on its website; in Odessa and Alborz, Texas.
The 40MW Alborz site was a joint venture in 2022 between Cipher and renewable energy firm WindHQ. The JV received a two-year $46.9 million secured credit facility from crypto lender BlockFi Lending to buy the crypto rigs.
Cipher was spun off from Bitcoin mining hardware giant Bitfury in March 2021 and went public via a merger with blank-check company Good Works Acquisition Corp.
