CIFR - Cipher Mining Remains An Attractive Bitcoin Miner

2024-07-11 08:00:00 ET

Summary

• Cipher Mining has competitive energy costs, strong balance sheet, and strategic hardware purchases.
• Cipher Mining has a balanced Bitcoin HODL strategy with 60% production/liquidation rate.
• Cipher's low power costs translate to low electricity cost per BTC, making it a miner that would maintain profitability post-halving.

Cipher Mining ( CIFR ) has been one of the Bitcoin ( BTC-USD ) miners that has appealed to me in terms of its competitive energy cost, its strong balance sheet, much less dilution of shares (dilution is typically the par for the course among Bitcoin miners), good cost control, and its well-timed, accretive purchases of hardware. I last covered CIFR in December, following its purchase of 7.1 exahashes of BITMAIN T21 rigs. In addition to the T21 rigs ordered in December, CIFR also ordered 16,700 units of Canaan’s ( CAN ) A1566 miners in January, in a bid to expand its hashrate after the Bitcoin halving event....

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