Cipher mining pro#

Number of Bitcoin Awarded Per Block in Late 2025E, Awarded Every 10 Minutes Percentage That Cipher Would Represent of the Total Bitcoin Network Hashrate Potential Cipher Mining Hashrate at 12/31/25E Projected Bitcoin Network Hashrate at 12/31/25E POTENTIAL 2026E PROFITABILITY OF CIPHER MINING

4) the effects of the next Bitcoin halving event in May 2024.В The network hashrate is an estimate of how many hashes are being generated by all Bitcoin miners trying to solve the current Bitcoin block.

3) locked-in electricity costs of about $0.027 per kilowatt-hour and.

2) a projected DecemBitcoin network hashrate of 455 EH/s, about triple the current level of 157 EH/s, to account for rapid growth in Bitcoin mining activity.1) the current Bitcoin spot price of US$49,190.In the financial model below, we calculate the operating cash flow that 39.8 EH/s of Bitcoin mining could generate based on:

Based on the market prices of that equipment, and factoring in contractual equipment discounts from Bitfury, Cipher could feasibly acquire the 39.8 Exahash per second (EH/s) of computing power it forecasts it will have by year-end 2025 by depleting that cash balance only - and without raising additional financing.В (Bitfury does not quote prices on its website, but using the prices quoted by a competitor, MicroBT, on its website, the cost to acquire state-of-the-art computing capacity is around US$1.6 million per EH/sвЂ“ before any discounts.)Д¬ipher Could Generate Significant Cash Flow When the public SPAC finds a target and reaches a deal, the SPAC and the target reach out to potential investors for funds which is called a PIPE (private investment in public equity).В The PIPE investors get a large equity stake, and the SPAC investors get stock in the acquired company, which becomes the publicly traded entity.Д¬ipher plans to use its cash to purchase mining equipment from Bitfury. The SPAC then goes public and begins to search for a company to acquire. In a SPAC, a group of investors raise money for a shell company with no underlying business.

Cipher mining pro#

The Cipher SPAC transaction implies a stock market capitalization of US$2.501 billion.В The company will have pro forma cash of US$501 million and no debt, meaning its enterprise value will be US$2.0 billion. and will trade on the NASDAQ under the symbol CIFR. Upon the expected 2Q 2021 closing of the transaction, the resultant company will be named Cipher Mining Inc. The real news is that this transaction, unlike many of the other SPACs created over the last few months, looks reasonably, even attractively, valued.Д¬ipher, a subsidiary of the Bitcoin mining computer manufacturer Bitfury Group, merged with Good Works Acquisition Corp. On March 5, another special purpose acquisition company (SPAC) deal was announced, this one involving a newly formed U.S.-based Bitcoin mining operation called Cipher Mining.