Crypto miner defies US regulations and purchases 11.000 devices

Mining company Cipher is not deterred by the uncertain regulations in the US and is upgrading its hardware.

According to the company's quarterly report released on May 9th, Cipher Mining has purchased 11,000 new A1346 mining machines from Canaan. With the help of the new hardware, Cipher aims to achieve a hashrate of 7.2 EH/s. The new mining rigs are expected to be operational by the end of the third quarter. The company now owns a total of 70,000 mining rigs, which will be deployed in its data center in Odessa, Texas.

Regulations for crypto companies in the US remain characterized by uncertainty. The Biden administration is considering introducing a new tax law of 30 percent on cryptominers. Additionally, the US Securities and Exchange Commission (SEC) is causing further industry unrest with a number of ongoing lawsuits.

"The intensive and often fluctuating electricity use by cryptominers can lead to higher electricity prices for consumers and increase risks to local electricity grids by overloading facilities, which can lead to service interruptions and safety risks," the White House said in a blog post.

Some US states are pushing back against the new tax law.

Montana Governor Greg Gianforte signed a bill on May 2nd that prohibits changes to the law aimed at imposing discriminatory electricity rates on local mining companies.

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