The joint venture affiliate of Cipher Mining, Alborz LLC, and WindHQ announced that it has secured a two-year loan of $46.9 million from Blockfi Lending LLC.
The loan amount will be used to purchase Bitmain S19J Pro mining rigs for Alborz’s 40 megawatt (MW) data center situated in Texas that is powered by a 163 MW wind energy source. Once the rigs are delivered, the mining facility will generate nearly 1.3 exahash per second (EH/s) of mining power which is commendable.
“This credit facility provides an attractive source of non-dilutive financing at the Alborz data center. We are thrilled to partner with BlockFi and continue to execute our business plan, build data centers with top-of-the-line rigs, and become a leading Bitcoin mining company in the U.S.” said Tyler Page, CEO of Cipher.
“We are pleased to partner with Cipher on this lending facility for the Alborz data center. Our goal is to support our clients’ working capital needs and provide them with financial capacity for future growth,” Joseph Chu, Senior Director at BlockFi said.
Bitcoin (BTC) mining hardware giant Bitfury, was responsible for the sudden fall of Cipher during March 2021. The shares of Cipher have fallen 37%, while the price of BTC has dropped 25%.
The mining operations of Cipher began in February 2022 at the Albortz data center. The firm is planning to generate approximately 445 MW electrical power capacity by the end of the first half of 2023.
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The annual filing also shows that Cipher has stepped into mining purchase contracts to deliver a hashrate of about 8.5 EH/s in 2022, based on agreed delivery schedules with Bitmain and SuperAcme and assuming timely deliveries. Of this mining power, Cipher is expected to own around 7.2 EH/s, with the remainder going to WindHQ.
