Cipher Mining, a U.S.-based Bitcoin mining company, has announced ambitious plans to increase its total hash rate capacity to over 7.2 EH/s with the addition of 11,000 new A1346 model machines. The machines, purchased from Canaan, a Chinese cryptocurrency mining equipment manufacturer, will bolster the company’s fleet to over 70,000 mining rigs.
The collaboration with Canaan represents an exciting opportunity for both companies, as Cipher CEO Tyler Page highlights the partnership’s potential, stating that the firm’s technology and operations teams have been working closely with the manufacturer to test its new generation of mining machines for several months. Page adds that these machines are expected to perform exceptionally well, especially during the hot summer months in Texas.
Canaan’s A1346 model is part of the Avalon Made A13 series, which was launched in October 2022. With a hash rate of 110 TH/s and power efficiency of 30J/TH, this model poses an attractive alternative to the popular Whatsminer and Antminer ASICs. Cipher expects the new machines to be delivered and energized in the third quarter of this year, which will complete the buildout at the company’s facility in Odessa, Texas.
While Cipher Mining has made strides in its self-mining capacity, reaching over 6.0 EH/s and exceeding its March projected hash rate of 5.7 EH/s, the company’s stock dropped roughly 4% at the market open today. However, a spokesperson remains confident that this latest move will reinforce Cipher’s position as a leading Bitcoin miner.
On the other hand, the overall Bitcoin hash rate soared to a new all-time high of 356 EH/s last week, only to drop back down to the same level as of yesterday, according to Blockchain.com. Bitcoin mining difficulty, which measures the complexity of producing new blocks, fell 1.45% to 48.01T on May 4, and a further drop of 0.35% is expected after the next difficulty adjustment in nine days.
While developments like those at Cipher Mining show an ever-expanding landscape for Bitcoin mining, the fluctuating hash rate and the drop in mining difficulty add a layer of uncertainty to the process. It remains to be seen how well the industry can adapt to these changes and continue to thrive in the competitive world of cryptocurrency mining. Nonetheless, enthusiasts and investors alike will undoubtedly keep an eagle eye on developments in the sector.