New York-based Cipher Mining aims to raise up to $250 million in its common stock offering on the stock market, according to a filing dated Sept. 21.
The move comes as Bitcoin miners are struggling to “make a living” as revenues are affected by mining difficulties such as rising electricity costs, Bitcoin prices and falling value of mining rigs.
H.C. Brokerage Company Wainwright &Co. will work with Cipher to sell shares of its common stock through an “at the market” agreement.This means that the shares will be sold at the market price at the time of purchase. The broker will earn a commission of up to 3% of the total proceeds from any sale.
Cipher Mining recorded a net loss of $29.2 million in the second quarter due to challenges in the cryptocurrency market. The company recently completed the addition of mining rigs at its wind-powered facility in Alborz, Texas.
Cryptocurrency miners have responded to difficult market conditions by raising money through stock transactions, Bitcoin sales, and loans. On Friday, Bitcoin miner Iris Energy said it had agreed to buy a $100 million stake with B. Riley. Bitcoin Mining storage provider Compute North also filed for Chapter 11 bankruptcy protection this week.
Back in June, several Bitcoin miners also had difficulty repaying loans of up to $4 billion due to the falling value of cryptocurrency mining machines.