Cipher Mining pursuing sale as bitcoin miners continue to look for alternatives: report
Quick Take Cipher Mining is exploring a potential sale after receiving takeover interest, Bloomberg reported. The Bitcoin miner’s stock surged more than 40% over the past five trading days and is up 60% year-to-date.
Cipher Mining is the latest crypto miner rumored to be looking for a deal.
The Bitcoin miner is exploring a potential sale after receiving takeover interest, people familiar with the matter told Bloomberg . Deliberations are in the early stages and it’s not certain Cipher Mining will decide to pursue a sale, the people said.
The Block reached out to Cipher Mining for comment but has yet to receive a response.
The artificial intelligence boom has led to strong demand for data centers at a time when the Bitcoin halving event in April cut miners’ revenue in half, leading many to explore strategic alternatives .
"With immediate power access in relatively short supply, Hyperscalers and AI firms are exploring alternatives, including leasing power/datacenter capacity from (or outright acquiring) bitcoin miners," JPMorgan analysts wrote in a June 5 note.
North American bitcoin miner Core Scientific (CORZ) in June signed a series of 12-year contracts with AI Hyperscaler CoreWeave, a cloud computing firm. Crypto miner CleanSpark purchased GRIID Infrastructure in a deal valued at $155 million. Meanwhile, Riot has staged a hostile takeover of Bitfarms following its failed attempt to acquire the latter for $950 million.
"Competition abroad will only continue to intensify and it strains credulity that US-listed companies…will be long-term lowcost producers and therefore market share winners in this extremely commodity industry,” short-seller Kerrisdale Captial wrote in a report last month.
Cipher produced 176 bitcoin in June, a 6% increase from 166 bitcoin in May. It sold 103 bitcoin and ended the month with a balance of approximately 2,209 bitcoin.
Cipher Minig’s stock was down 2.8% to $6.59 per share at publication time. However, shares have surged more than 40% over the past five trading days and are up about 60% since the start of the year.
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