Cipher Mining grows Bitcoin data center holdings in West Texas

Cipher Mining recently announced the acquisition of a 250-acre property in West Texas, which includes a 300-megawatt (MW) data center.

"$CIFR Announces Acquisition of New 300 MW Data Center Site in West Texas. The immediately available 250-acre site includes a newly constructed high-to-mid voltage substation, approvals for 300 MW, and agreements necessary to participate in the ERCOT market. New site is equally well-suited for HPC infrastructure and bitcoin mining. Company’s aggregate data center portfolio now exceeds 2.5 GW." Cipher Mining posted on their official X account.

The newly acquired site is expected to enhance Cipher's high-performance computing (HPC) services due to its strategic location and existing infrastructure.

The company invested $67.5 million in the property, marking a significant expansion of its data center capabilities.

The acquisition deal involves a variable fee agreement of $3 per megawatt-hour (MWh) for the first five years once the site becomes fully operational.

The facility features a high-to-mid voltage substation and has already obtained the necessary regulatory approvals to participate in the Electric Reliability Council of Texas (ERCOT) market.

Tyler Page, CEO of Cipher Mining, expressed enthusiasm about the purchase, stating, “We are thrilled to add another high-quality site to our growing portfolio."

He emphasised that finding large-scale data center opportunities with existing high-quality substations is "particularly rare and desirable in today’s market."

With this acquisition, Cipher Mining's total data center portfolio now exceeds 2.5 gigawatts (GW) across 10 different locations.

The company plans to finalise the transaction in September, following the completion of due diligence on the site.

Cipher’s stock experienced an 8.4% increase on Thursday, reflecting investor optimism regarding the acquisition.

Despite the recent stock surge, Cipher’s shares have dropped over 31% in the past month, although they have shown a 27.6% gain over the past six months.

This acquisition positions Cipher Mining to enhance its footprint in the Bitcoin (CRYPTO:BTC) mining and data center industry, leveraging the Texas site’s capacity and strategic advantages.