Cipher Enters the U.S. Wholesale Power Market with Acquisition of Ohio Data Center

Cipher enters US wholesale power market with Ohio data center acquisition

Cipher Mining has made a significant move by acquiring a 200-megawatt power site in Ohio, known as “Ulysses.” This marks the company's initial extension beyond Texas and its entry into the PJM wholesale electricity market, which is the largest power market in the United States.

According to the announcement issued on Tuesday, this 195-acre facility has already secured power capacity through AEP Ohio, complete with all necessary utility agreements, and is projected to become operational by the fourth quarter of 2027. Cipher stated that the site is equipped for high-performance computing and data center use, in addition to Bitcoin mining operations. The financial details of the acquisition have not been disclosed.

The expansion is designed to satisfy the growing demand from hyperscalers—large cloud computing companies like Amazon Web Services and Google Cloud—who require substantial data center capacities. Cipher's CEO, Tyler Page, noted, "Hyperscalers are driving unprecedented demand for large-scale sites." He emphasized that the new facility will enable the company to enhance its high-performance computing (HPC) hosting business.

Source: Cipher Mining

This development aligns with a broader trend where publicly listed Bitcoin mining companies are moving into power, data center, and manufacturing infrastructures that go beyond traditional mining practices. For instance, Hut 8 recently entered into a 15-year lease valued at approximately $7 billion for 245 megawatts of AI data center capacity at its River Bend campus in Louisiana, with infrastructure provider Fluidstack as the tenant and support from Google for lease payments. Shortly afterward, Bitdeer leased about 188,000 square feet at a logistics facility in Sparks, Nevada, to enhance its manufacturing presence in the U.S.

Key Points

Cipher Mining has acquired a 200-megawatt power site, “Ulysses,” in Ohio.
The facility is aimed at serving the demand from large cloud computing companies.
The deal signifies a trend of public Bitcoin miners diversifying into power and data center infrastructure.
Bitcoin mining hash prices are under pressure, impacting miner revenues.

Current Challenges in Bitcoin Mining

The Bitcoin mining hash price, which indicates the revenue miners can earn per unit of computing power, has remained below $40 since mid-November—a threshold that many miners consider to be break-even. As a result of this decline, mining companies are re-evaluating their operational strategies, as profitability margins in the sector continue to be strained.

Bitcoin hash price over the past three months. Source: Hashrate Index

To combat these challenges, many miners are looking for alternative avenues through demand in AI and HPC, while also considering renewable energy sources to cut costs and enhance profitability. Sangha Renewables has recently activated a 20-megawatt solar-powered mining facility in Ector County, Texas, while Phoenix Group initiated a 30-megawatt hydro-powered operation in Ethiopia this past November. Additionally, Canaan has partnered with Soluna to introduce mining capacity at a wind-powered site in Texas and is working on adaptive mining rigs that leverage AI for better energy efficiency.

Despite the ongoing pressures on mining profitability, Bitcoin mining stocks have seen a notable rally in 2025. This indicates that public markets are increasingly prioritizing the long-term strategic positioning of miners rather than simply focusing on immediate Bitcoin production. Some top-performing publicly traded miners include IREN Limited, which is up approximately 331% year-to-date, followed by Applied Digital at 246%, Cipher Mining at 250%, Hut 8 at 160%, and Riot Platforms at 36%, as per Google Finance data.

Iren Limited YTD stock price. Source: Google Finance

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