Cipher Mining (CIFR) said it lowered its spending on bitcoin mining rigs by about $10 per terahash/second while reporting a quarterly net loss two-thirds wider than in the previous three months.
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The New York-based company, which listed in a merger with a special purpose acquisition vehicle (SPAC) in August last year, lost $29 million in the second quarter.
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The miner has 1.3 exahash per second (EH/s) running at its 40 megawatt (MW) facility in Alborz, Texas and another 0.6 EH/s en route to two other facilities. Mining rigs will “soon” start shipping to a 205MW site, its largest, according to a company report Tuesday.
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The fleet will be running at an efficiency of 32.1 joules per terahash (J/TH), bought at an average price of $34.96 per terahash/second (TH/s). That’s lower than the $45 TH/s it reported in Q1 and in line with market pricing: Rigs with efficiency of under 38 J/TH are priced at $35.2, according to information platform Luxor Hashrate Index.
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Cipher has put down $196.7 million in deposits for equipment, down from $207 million in Q1, according to the report. It has mostly paid off its equipment contract with Bitmain for 27,000 rigs, barring a final payment that it plans to cover with a company credit, CEO Tyler Page said during the earnings call.
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It is now starting to accept deliveries for 60,000 rigs from MicroBT. The miner is in talks with MicroBT to “better align” deliveries with the construction progress of the data center, Page said.
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Cipher has secured a fixed price of about $27 per megawatt hour (about $0.027 per kilowatt hour) for its biggest site in Odessa, west Texas, significantly lower than competitors in the region, the CEO said.
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Earlier this year, Cipher cut its 2022 power capacity forecast from 405MW, including 305MW for self-mining, to 345MW, including 275MW for self-mining. The rest will go to hosting other companies’ rigs.
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The firm has no corporate debt, other than its share of an equipment financing agreement for the Alborz site, which is around $11 million, according to the report.
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Cipher shares fell 4% in early Nasdaq trading.
Read more: Cipher Raises Year Hashrate View While Cutting Power Guidance
