Cipher Mining Buys 11,000 Crypto Mining Rigs From Canaan, Reaches 6 EH/s Hashrate

Cipher Mining (CIFR) announced the purchase of 11,000 bitcoin mining rigs from Canaan Inc. (CAN) after reaching 6 exahash/second (EH/s) of computing power, the firm said Tuesday.

The new Canaan model A1346 rigs will boost its computing power to 7.2 EH/s when installed, with energization expected by the end of Q3. Cipher says it has the potential reach 8.2 EH/s by the end of the year.

At the time of writing, Cipher's stock was up over 6% at $2.07 in pre-market trading.

The miner slightly overshot its previously stated hashrate target of 5.7 EH/s for the end of Q1. Meanwhile, its net loss per share fell by more than half in Q1 2023 compared to the same period last year; to $0.03 from $0.07.

The miner expects an average price of $0.027 per kilowatt hour (kWh) of electricity across its portfolio, with 96% of its capacity secured by fixed price agreements. Other miners without fixed price agreements saw soaring costs in 2022 due to the energy crisis.

Canaan saw its sales dwindle throughout the year, outcompeted by other manufacturers while the market overall was depressed.