based in New York bitcoin and cryptocurrency Mining company Cipher Mining aims to raise up to $250 million by listing its common stock on the stock market, according to a filing Sept. 21.
High Energy Costs and Low Bitcoin Price Continue to Affect Miners
This move comes as Bitcoin miners struggle to survive in a challenging financial environment shaped by high electricity costs, low Bitcoin price and depreciation of mining rigs.
Broker HC Wainwright & Co. will work with Cipher to sell its common stock through an agreement “on the market”. This means that the shares will be sold at market price at the time of purchase. The broker will earn a commission of up to 3% of the gross revenue from sales.
Cipher Mining posted a net loss of $29.2 million in the second quarter, citing challenging conditions in the cryptocurrency market. The company had recently completed adding mining rigs to its wind-powered facility in Alborz, Texas.
Cryptocurrency mining companies are trying to cope with difficult market conditions by raising money through stock and equity deals, selling Bitcoin and taking out loans. On Friday, Bitcoin miner Iris Energy announced that it has finalized a $100 million stock purchase deal with B. Riley.
Bitcoin mining hosting provider Compute North also filed for Chapter 11 bankruptcy protection this week.
As Bloomberg reported in June, some Bitcoin miners are struggling to repay up to $4 billion in loans collateralized by the undervalued machines.
*Not investment advice.
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