According to a regulatory filing filed in Sept. 2022, Cipher Mining plans to raise as much as $250 million through a stock exchange offering. H.C. Wainwright & Co. will act as broker for the Cipher stock.
Cipher Mining, New York’s stock exchange offering of its common stock is expected to bring in as much as $250 million. A Sept. 21 regulatory filing indicates.
This move is coming as bitcoin miners struggle in tough revenue environments characterized by high electricity prices, low bitcoin prices and mining equipment decreasing in value.
Cipher Mining plans to sell stock at the market value
According to the filing, Broker H.C. Wainwright & Co. and Cipher will collaborate to sell shares of their common stock under an “at market” agreement. The shares will be sold at the market price at the time they are purchased. A maximum of 3% commission will be paid to the broker for any sale.
Cipher Mining reported a net loss in the second quarter of $29.2million, citing the challenging crypto market conditions. The company has just completed the addition of mining rigs to its wind-powered facility located in Alborz Texas.
The difficult market conditions have made it hard for crypto mining companies to raise money via stock and equity deals, buying and lending. Iris Energy, a Bitcoin miner, announced that it secured a \$100-million equity purchase agreement with B. Riley. Compute North, a Bitcoin mining hosting provider, filed this week for Chapter 11 bankruptcy protection.
Bloomberg reports that some bitcoin miners are having difficulty repaying loans of up to $4Billion backed by machines with decreased value.
