In February, Cipher had the largest percentage change in BTC HODL - increasing nearly 10% from January. In the event that BTC goes up substantially, the value of the assets the company has in treasury will increase as well and those spikes in BTC price can be used to opportunistically raise more cash without diluting shareholders. While selling down BTC positions isn't always indicative of a company that is in trouble financially, I do view 'stacking' as a positive sign. One of the things that I look at each month is the net change in the Bitcoin balances for each publicly traded miner. Some of the opportunities the company says it has declined to move on involved credit terms that were unfavorable and acquisitions of businesses that have fundamental flaws. This near-term opportunity for growth with strong built-in unit economics but without operational spending commitments is one that few if any of our competitors have and demonstrate Cipher's continued approach to look for low-risk opportunities. So we will continue to evaluate expansion in light of market conditions. However, given volatile market conditions, we want to be mindful of not overextending ourselves. In the earnings call earlier this week, CEO Tyler Page gave insight into the strategic approach going forward and offered rationale for why the company hasn't jumped on faster expansion despite machine acquisition opportunities being available: While EH/s growth has been strong since getting the company's Odessa site online, Cipher has guided a somewhat conservative approach to scaling from here relative to what has been brought on in the last 3 months.Ĭipher anticipates a total potential hash rate of 8.2 EH/S this year, which would come primarily from its Bear and Chief operating sites. With 398 Bitcoin produced in the month of February, Cipher now produces more Bitcoin each month than Bitfarms ( BITF), HIVE Blockchain ( HIVE), and Hut 8 Mining ( HUT). This rapid increase in mining capacity since November has propelled Cipher into the top 5 public miners by production capacity as of last month: Capacity at the end of February was 5.2 EH/s. Production & Capacity GuidanceĪs mentioned, Cipher Mining has very quickly scaled a mining operation over the last few months. In this article, we'll look at the production growth, treasury strategy, and point out some things to keep an eye on. Having now been 2 years since the SPAC merger was announced and over a year since it was completed, Cipher has become the third largest Bitcoin miner by market cap - though with a 75% reduction to the original $2 billion merger announcement valuation. At the time, the company had a valuation of $2 billion with plans to use cash from the merger to grow out a Bitcoin mining operation. Cipher Mining became a public company through a SPAC merger with Good Works Acquisition Corp back in 2021. The company has quickly scaled a mining operation over the last several months and is now one of the leaders in the public Bitcoin mining space by several key metrics. There is a 15% operational cost.AgnormarkThe fastest growing public Bitcoin ( BTC-USD) miner by production capacity is currently Cipher Mining ( NASDAQ: CIFR). Refund Policyĭebit/Credit payments - 72-hour period from time of purchase for a full refund.Ĭryptocurrency payments - 72-hour period from time of purchase for a refund. CF Strategies LLC does not provide legal, tax or accounting advice. By purchasing Market Cipher, you fully understand and accept these risks. CF Strategies LLC Is not liable for any potential financial losses incurred from (including but not limited to) the Market Cipher indicator, the Market Cipher Discord Channel and its members. There is always the potential of loss when investing/trading in any financial asset. CF Strategies LLC reserves the right to revoke any membership if that member is deemed harmful to the wellbeing of the community and/or breaches our community guidelines. Market Cipher is an advanced indicator, but does not guarantee profitable results.
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