coindesk.com
Cipher Mining (CIFR) increased its expectations for the total hashrate capacity for the remainder of the year by 0.5 exahash/second (EH/s), according to a Tuesday filing with the U.S. Securities and Exchange Commission.
In its annual earnings report for 2021, Cipher Mining had said it expected to deploy a total of 8.5 EH/s, with 7.2 EH/s going to its self-mining operations, by the end of 2022. The miner now expects 9 EH/s in total hashrate, 7.5 EH/s of which will go towards its own mining operations.
The increased hashrate is due to improved machine allocation from MicroBT, according to the filing. The firm has contracts for 27,000 rigs with Bitmain and 60,000 rigs from MicroBT, CEO Tyler Page said in Tuesday's analyst call.
Cipher is "having conversations" with virtually every mining rig manufacturer, including new entrants like Intel, Page said.
At the same time, Cipher Mining reduced its expectations of power capacity. The firm expected to have 405 megawatts (MW) of total capacity by the end of 2022, 305 MW of which would go towards its self-mining operations, but now has updated its forecast to 345 MW, with 275 MW used for self-mining, the filing said.
The filing shows that phase 2 of development of Cipher Mining's Bear and Chief facilities has been pushed back to 2023.
However, the CEO said in Tuesday's call that the electricity capacity is more than enough to host machines scheduled for delivery throughout the year. The facilities could accommodate more mining rigs, should the firm find opportunity to buy them at competitive pricing, he said.
Cipher Mining closed its first loan to finance the purchase of equipment, it said earlier in May, securing $46.9 million for its Alborz facility from BlockFi. The firm believes lenders are and will continue to "be comfortable" with Cipher Mining's model, given its low costs, despite unfavorable market conditions, Page said.
Given its current contracts, the firm has anticipates its cost of electricity to be $0.0273 per kilowatt hour and the cost of machines to be $45.01 per TH/s, according to the filing.
The firm believes lenders are and will continue to "be comfortable" with Cipher Mining's model, given its low costs, despite unfavorable market conditions, and expects multiple debt deals in the future.
The shares of Cipher were down about 22% on Tuesday, while mining peers have recovered from brutal selloff and are up anywhere between 4%-5% on average. Meanwhile, bitcoin finally caught some bid and rose above $31,000.
Read more: Cipher Mining, WindHQ Joint Venture Secures $46.9M Loan From BlockFi