SoftBank's significant investment in Cipher Mining signals a strategic shift towards high-performance computing (HPC) and artificial intelligence (AI) infrastructure. The move comes at a time when Bitcoin miners are facing margin pressure due to increased competition and reduced mining rewards.
Cipher Mining (CIFR) shares surged over 18% in after-hours trading following an announcement from SoftBank that it would acquire 10.4 million shares of the company, valued at $50 million. The investment, according to Cipher, will bolster the development of a high-performance computing (HPC) data center and solidify SoftBank's position as a significant investor in Cipher Mining .
'SoftBank’s emphasis on innovation in technology and AI development aligns with our vision to establish ourselves as a leader in HPC data center development,' stated Tyler Page, CEO of Cipher Mining. This investment arrives amidst ongoing challenges faced by bitcoin miners as they grapple with a shrinking profit margin due to intense competition within the industry. The recent Bitcoin Halving events, which slashed mining rewards by half, have further intensified these pressures. Consequently, many miners are strategically redirecting their resources towards hosting HPC and artificial intelligence (AI) computing needs to diversify their revenue streams beyond mining operations.Aoyon Ashraf, CoinDesk's managing editor for Breaking News, provides insightful commentary on this development. Ashraf, with nearly a decade of experience at Bloomberg covering equities, commodities, and technology, offers a nuanced perspective on the evolving landscape of the crypto mining industry. Prior to his tenure at Bloomberg, Ashraf spent several years on the sell-side, specializing in financing small-cap companies. Ashraf holds ETH and BTC, as well as ALGO, ADA, SOL, OP, and a select range of other altcoins below CoinDesk's disclosure threshold of $1,000.
Softbank Cipher Mining HPC Data Center Bitcoin Mining AI Computing
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Amber Mining: Revolutionizing Cryptocurrency Mining with Cloud SolutionsAmber Mining is a leading cloud mining platform that empowers both beginners and experienced miners to participate in cryptocurrency mining effortlessly. The company provides a user-friendly, secure, and transparent platform that eliminates the need for expensive hardware and technical expertise.
Read more »
BIT Mining Expands to Ethiopia for Cheaper MiningBIT Mining acquired a significant amount of infrastructure in Ethiopia, leveraging the country's low electricity prices to extend the lifespan of its bitcoin mining rigs.
Read more »
Calibre Mining Achieves Fourth Consecutive Year of Responsible Gold Mining ComplianceCalibre Mining, a leading mid-tier gold producer, announces its fourth consecutive year of compliance with the World Gold Council's Responsible Gold Mining Principles (RGMPs). This achievement reflects Calibre's commitment to sustainability, transparency, and ethical mining practices. The company successfully completed a readiness review, reinforcing its dedication to producing conflict-free gold and bolstering stakeholder confidence. Calibre's adherence to the RGMPs has been independently externally assured, further affirming its commitment to leading standards of environmental, social, and governance (ESG) performance.
Read more »
Zijin Mining Makes Offer for 25% Stake in Zangge Mining, Consolidating Control Over Julong Copper ProjectZijin Mining Group, a leading Chinese copper and gold producer, has made a significant move in the Chinese mining sector by offering to acquire a nearly 25% stake in fellow Chinese miner Zangge Mining for 13.7 billion yuan ($1.87 billion). This acquisition would grant Zijin controlling rights over Zangge, which operates in the mineral-rich Qinghai region, and allow for the consolidation of Zijin’s ownership of the Julong copper project in Tibet. The Julong project, a joint venture between Zijin and Zangge, is poised to become China’s largest single copper operation once its expansion reaches a capacity of 350,000 tonnes per day.
Read more »
Zijin Mining Set to Acquire Zangge for Lithium ExpansionChinese mining giant Zijin Mining Group Co. is in talks to acquire Zangge Mining Co. Ltd., a Chinese lithium producer, marking a significant move into the burgeoning lithium market.
Read more »
BitFuFu Secures 80,000 Mining Rigs in Deal with BitmainBitFuFu, a cloud mining bitcoin platform, has partnered with Bitmain to acquire up to 80,000 S-series mining rigs. This agreement will allow BitFuFu to expand its self-mining operations and cloud-mining services, utilizing the latest models like the S21 XP and S21 Pro. The deal also features flexible financial terms, enabling BitFuFu to pay partially in shares and defer cash payments.
Read more »