Core Viewpoint - Cipher Mining Inc. reported a quarterly loss of $0.11 per share, aligning with the Zacks Consensus Estimate, compared to earnings of $0.13 per share a year ago [1] - The company has shown mixed performance in terms of revenue and earnings estimates over the past quarters [2][6] Financial Performance - Cipher Mining's revenues for the quarter ended March 2025 were $48.96 million, missing the Zacks Consensus Estimate by 2.48%, but showing an increase from $48.14 million year-over-year [2] - The company has surpassed consensus revenue estimates only once in the last four quarters [2] Stock Performance - Cipher Mining shares have declined approximately 35.8% since the beginning of the year, contrasting with the S&P 500's decline of 3.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $51.68 million, and for the current fiscal year, it is -$0.39 on revenues of $255.36 million [7] - The trend of estimate revisions for Cipher Mining is mixed, which may change following the recent earnings report [6] Industry Context - The Technology Services industry, to which Cipher Mining belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Revenue and Financial Performance - Revenue for the three months ended March 31, 2025, was $49.0 million, an increase of 1.8% from $48.1 million in the same period of 2024, driven by higher average bitcoin prices despite a decrease in bitcoin mined due to the halving [165]. - The net loss for the three months ended March 31, 2025, was $39.0 million, compared to a net income of $39.9 million in the same period of 2024, reflecting a decrease of $78.9 million [182]. - Adjusted earnings for the three months ended March 31, 2025, were $6.138 million, down from $63.030 million in 2024 [193]. Costs and Expenses - The cost of revenue for the same period was $14.9 million, slightly up from $14.8 million in 2024, primarily due to fixed power costs under the Power Purchase Agreement [166]. - Compensation and benefits increased to $14.3 million in Q1 2025, up $1.3 million from $13.0 million in Q1 2024, attributed to a rise in headcount [167]. - General and administrative expenses rose to $9.0 million, an increase of $2.9 million compared to $6.1 million in the prior year, mainly due to higher legal and professional fees [168]. - Depreciation and amortization expenses surged to $43.5 million, up $26.3 million from $17.2 million in Q1 2024, due to increased mining equipment and a change in estimated useful life of miners [169]. - Share-based compensation expense for the three months ended March 31, 2025, was $9.132 million, compared to $8.317 million in 2024 [193]. Cash Flow and Liquidity - Cash used in operations was $47.2 million for Q1 2025, an increase of $20.6 million from $26.6 million in Q1 2024 [182]. - Cash used in investing activities decreased by $13.7 million to $17.3 million for the three months ended March 31, 2025, compared to $31.0 million for the same period in 2024 [183]. - Cash flows from financing activities increased by $22.0 million to $82.1 million for the three months ended March 31, 2025, driven by a $50.0 million increase in proceeds from treasury stock reissued for PIPE investment [184]. - As of March 31, 2025, the company had cash and cash equivalents of $23.2 million and total stockholders' equity of $734.8 million [177]. - The company has a secured line of credit of up to $25.0 million under the Coinbase Overnight Credit Facility, with $25.0 million drawn as of March 31, 2025 [178]. Inventory and Assets - The ending balance of Bitcoin inventory as of March 31, 2025, was 630 BTC, valued at $52.0 million [162]. - The company held 630 bitcoin in inventory as of March 31, 2025, with a potential $3.9 million increase in net loss from a 10% decrease in bitcoin price [199]. Lease and Agreements - Monthly rent payments for the amended lease agreement for office space are approximately $0.2 million, with a term through May 2029 [185]. - The Combined Luminant Lease Agreement commenced on November 22, 2022, with an initial term of five years and an amended payment schedule totaling $19.7 million due over the remaining four-year period starting in July 2023 [189]. Other Financial Metrics - A 10% decrease in power prices would result in an estimated $17.1 million decrease in the estimated fair value of the derivative asset and an increase in net loss for the three months ended March 31, 2025 [200]. - The company had a $31.6 million decrease in proceeds from the issuance of common stock during the three months ended March 31, 2025 [184].

Financial Data and Key Metrics Changes - In Q1 2025, Cipher Mining reported revenue of $49 million, a 16% increase from $42 million in Q4 2024, driven by higher Bitcoin production and prices [28][30] - The average Bitcoin price rose from approximately $83,000 in Q4 2024 to about $93,000 in Q1 2025, although the spot price declined from $93,000 to roughly $83,000 by the end of Q1 2025, resulting in a $20 million unrealized loss on Bitcoin holdings [29][30] - The company reported a GAAP net loss of $39 million or $0.11 per share, compared to a net income of $40 million or $0.13 per share in Q1 2024 [31][32] Business Line Data and Key Metrics Changes - The Odessa data center mined 5.24 Bitcoin in Q1 2025, generating $49 million in revenue, up from 4.92 Bitcoin and $42 million in Q4 2024, reflecting a 6.5% increase in production [27][32] - The cost of revenue decreased by 18% sequentially due to less frequent curtailment, while year-over-year costs remained flat [33] Market Data and Key Metrics Changes - The company’s operating capacity stands at 327 MW, with a pipeline expansion of approximately 2.8 GW planned for the coming years [9] - The average all-in electricity cost was approximately $23,379 per Bitcoin produced, showcasing competitive pricing [8] Company Strategy and Development Direction - Cipher Mining is transitioning from solely a Bitcoin miner to a developer of high-performance computing (HPC) data centers, with a focus on operational flexibility and strategic partnerships [11][12] - The company has signed a term sheet with Fortress Credit Advisors LLC for financing at the Barbara Lake site, indicating a shift towards joint ventures for capital-intensive projects [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s operational flexibility and ability to navigate market challenges, highlighting a disciplined treasury management strategy that outperformed simple holding strategies [15][16] - The management noted ongoing interest from potential tenants and financing partners, with a robust pipeline of data center developments expected to meet future demand [12][14] Other Important Information - The company’s treasury management strategy unlocked $90 million in liquidity, supporting growth without diluting shareholders [17] - The Odessa facility achieved a hash rate of 11.3 Exahashes per second, with a fleet efficiency of 17.6 Joules per Terahash [18] Q&A Session Summary Question: Can you provide more details on the Fortress announcement and the financing arrangement? - Management confirmed that Barbara Lake would enter a joint venture with Fortress, which will backstop the financing for the data center build, with Cipher retaining the right to own up to 49% of the JV [46][48] Question: Have conversations with potential tenants changed since the tariff announcements? - Management reported that the pace of conversations has increased, with more inquiries from large investors and tenants, indicating sustained interest despite tariff announcements [52][53] Question: How does the financing strategy at Barbara Lake differ from other Bitcoin miners? - Management emphasized the optionality in their strategy, focusing on acquiring sites and developing assets while leveraging partnerships to minimize capital expenditure [58][63] Question: How is the interconnection process evolving in Texas? - Management noted that new legislation is expected to streamline the interconnection process, which could make it more challenging but ultimately beneficial for the market [66][69] Question: What is the efficiency of the rigs being deployed? - Management indicated that the initial efficiency of the 2.5 Exahash from idle rigs would be around 20-21 Joules per Terahash, but this would improve with the arrival of new rigs [70][71]

Operational Performance - Revenues increased from $42 million in Q4 2024 to $49 million in Q1 2025[13, 57] - Cipher mined 602 BTC in Q1 2025, up from 585 BTC in Q4 2024[13] - The all-in electricity cost per BTC was $23,379 in Q1 2025[13] - Odessa site accounted for approximately 86% of Cipher's April 2025 BTC production[22, 27] - Alborz, Bear & Chief JV sites accounted for approximately 14% of Cipher's April 2025 BTC production[28, 34] Expansion and Growth - Cipher's self-mining hashrate is expected to reach approximately 23.1 EH/s by Q3 2025[17] - Black Pearl Phase I is on track for early deployment of approximately 2.5 EH/s in Q2 2025 and ramping up to approximately 9.6 EH/s in Q3 2025[18, 42] - Barber Lake site has approved power capacity of 300 MW and signed a joint venture term sheet with Fortress to secure financing[44, 47] - Stingray site has approved power capacity of 100 MW with energization expected in Q3 2026[48, 51] Financial Results - GAAP net loss was $39 million in Q1 2025, compared to net earnings of $18 million in Q4 2024[58] and net earnings of $40 million in Q1 2024[61] - Adjusted earnings were $6 million in Q1 2025, down from $51 million in Q4 2024 and $63 million in Q1 2024[58, 61] - Adjusted earnings per share was $0.02 in Q1 2025, compared to $0.14 in Q4 2024 and $0.21 in Q1 2024[58, 64]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $49 million, a 16% increase from $42 million in Q4 2024, driven by higher Bitcoin production and prices [26][27] - The average Bitcoin price increased from approximately $83,000 in Q4 2024 to approximately $93,000 in Q1 2025, although the spot price declined to roughly $83,000 by the end of Q1 [26][27] - The company reported a GAAP net loss of $39 million or $0.11 per share, compared to a net income of $40 million or $0.13 per share in Q1 2024 [28][29] Business Line Data and Key Metrics Changes - The Odessa data center mined 5.24 Bitcoin in Q1 2025, generating $49 million in revenue, compared to 4.92 Bitcoin and $42 million in Q4 2024, reflecting a 6.5% increase in production [25][29] - The cost of revenue decreased by 18% sequentially due to less frequent curtailment, while year-over-year costs remained flat [30] Market Data and Key Metrics Changes - The company’s operating capacity stands at 327 MW, with an expected pipeline capacity expansion of approximately 2.8 GW in the coming years [7] - The average all-in electricity cost was approximately $23,379 per Bitcoin produced, reflecting competitive pricing [6] Company Strategy and Development Direction - The company is transitioning from solely a Bitcoin miner to a developer of high-performance computing (HPC) data centers, with a focus on operational flexibility and strategic partnerships [9][11] - A term sheet was signed with Fortress Credit Advisors LLC for financing at the Barbara Lake site, indicating a strategic move to leverage external capital for development [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s operational flexibility and ability to adapt to market cycles, despite turbulent macroeconomic conditions [5][12] - The treasury management strategy has been effective, unlocking $90 million in liquidity to support growth without diluting shareholders [14] Other Important Information - The company has engaged in discussions with potential tenants and financing partners, indicating strong interest in its data center developments [10][11] - The Odessa facility has received industry recognition for its operational excellence, setting benchmarks for efficiency [15] Q&A Session Summary Question: Can you provide more details on the Fortress announcement? - The Fortress partnership will be a joint venture, with Fortress backing the financing of a full data center build, allowing the company to retain up to 49% ownership without additional capital [43][44][45] Question: How have conversations progressed since the tariff announcements? - The pace of conversations has increased, with more inquiries from large investors and tenants, indicating sustained interest despite tariff changes [48][49] Question: What is the financing strategy for Barber Lake? - The financing strategy allows the company to develop data centers without the high cost of capital typically associated with Bitcoin mining, enabling better economics [54][56][59] Question: How is the company managing long lead time item purchases? - The company prioritizes getting substations ordered and built, which are critical for tenant due diligence and project timelines [74][75] Question: What is the relationship with SoftBank now that they have invested? - The company is focused on securing a high-quality tenant for Barbara Lake, with hopes that SoftBank could become a tenant, while also exploring other potential tenants [78][80]

[First Quarter 2025 Highlights and Business Update](index=1&type=section&id=First%20Quarter%202025%20Highlights%20and%20Business%20Update) Cipher reported increased Q1 2025 revenue and Non-GAAP Adjusted Earnings, alongside a GAAP Net Loss, while advancing strategic data center developments and accelerating hashrate deployment plans Q1 2025 Financial Highlights | Metric | Value | Note | | :--- | :--- | :--- | | Revenue | $49 million | Up 16% quarter over quarter | | GAAP Net Loss | $39 million | - | | Non-GAAP Adjusted Earnings | $6 million | - | - Signed a term sheet with Fortress Credit Advisors LLC to serve as the joint venture financing partner for the development of a next-generation data center at Barber Lake[2](index=2&type=chunk)[3](index=3&type=chunk)[6](index=6&type=chunk) - Nearing completion of the Black Pearl Data Center's Phase I, with energization expected in May, enabling deployment of existing rigs to bring **~2.5 EH/s** online one quarter earlier than planned[2](index=2&type=chunk)[4](index=4&type=chunk) Hashrate Expansion Plan | Timeline | Expected Hashrate | Note | | :--- | :--- | :--- | | Current (post-Odessa upgrade) | ~13.5 EH/s | First full quarter of operations with upgraded fleet | | End of Q2 2025 | ~16.0 EH/s | Achieved through early deployment at Black Pearl | | End of Q3 2025 | ~23.1 EH/s | Subject to new rig delivery schedules | [Financial Statements](index=5&type=section&id=Financial%20Statements) The company's financial statements for Q1 2025 show increased total assets but a net loss, primarily due to higher non-cash expenses and unrealized bitcoin losses [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$913.8 million** by March 31, 2025, driven by higher deposits on equipment, while bitcoin holdings decreased Balance Sheet Comparison (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $23,173 | $5,585 | | Bitcoin | $52,024 | $92,651 | | Deposits on equipment | $122,502 | $38,872 | | Total assets | $913,792 | $855,446 | | Total liabilities | $178,997 | $173,493 | | Total stockholders' equity | $734,795 | $681,953 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 bitcoin mining revenue slightly increased, but the company reported a **$39.0 million** net loss, primarily due to higher depreciation and unrealized bitcoin losses Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue - bitcoin mining | $48,959 | $48,137 | | Depreciation and amortization | ($43,467) | ($17,244) | | Unrealized (losses) gains on bitcoin | ($20,178) | $40,556 | | Operating (loss) income | ($38,088) | $46,786 | | Net (loss) income | ($38,975) | $39,900 | | (Loss) income per share - diluted | ($0.11) | $0.13 | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Cipher uses non-GAAP measures like Adjusted Earnings to provide a clearer view of operating performance by excluding non-cash and non-recurring items, reporting **$6.1 million** in Q1 2025 Adjusted Earnings - The company uses non-GAAP measures like Adjusted Earnings to help evaluate business performance by excluding items such as non-cash change in fair value of derivative assets, share-based compensation, depreciation and amortization, and deferred income tax[14](index=14&type=chunk) Reconciliation of GAAP Net (Loss) Income to Non-GAAP Adjusted Earnings (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net (loss) income (GAAP)** | **($38,975)** | **$39,900** | | Change in fair value of derivative asset | (7,330) | (7,359) | | Share-based compensation expense | 9,132 | 8,317 | | Depreciation and amortization | 43,467 | 17,244 | | Deferred income tax (benefit) expense | (635) | 5,178 | | **Adjusted (loss) earnings (Non-GAAP)** | **$6,138** | **$63,030** | Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS (diluted) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net (loss) income per share (GAAP)** | **($0.11)** | **$0.13** | | **Adjusted (loss) earnings per share (Non-GAAP)** | **$0.02** | **$0.21** | [Disclosures and Other Information](index=2&type=section&id=Disclosures%20and%20Other%20Information) This section provides standard corporate information, including Cipher's business focus, forward-looking statement disclaimers, and investor relations contact details [About Cipher](index=2&type=section&id=About%20Cipher) Cipher focuses on developing and operating industrial-scale data centers for bitcoin mining and High-Performance Computing (HPC) hosting services - Cipher's business is centered on developing and operating industrial-scale data centers for two main purposes: bitcoin mining and HPC hosting[8](index=8&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward%20Looking%20Statements) This report contains forward-looking statements regarding future plans and financial performance, subject to risks and uncertainties, and protected under safe harbor provisions - The report includes forward-looking statements about business strategy, data center development, and financial results, which are subject to risks and uncertainties[9](index=9&type=chunk)[10](index=10&type=chunk) - Investors are advised to consider the 'Risk Factors' section of the company's Annual Report on Form 10-K for a more detailed understanding of potential risks[10](index=10&type=chunk)[12](index=12&type=chunk)

Financial Performance - Cipher Mining Inc. reported first quarter 2025 revenue of $49 million, representing a 16% increase quarter over quarter [1] - The company experienced a GAAP net loss of $39 million, equating to a loss of $0.11 per diluted share, while non-GAAP adjusted earnings were $6 million, or $0.02 per diluted share [1][8] Operational Updates - The company signed a term sheet with Fortress Credit Advisors to act as the joint venture financing partner for the Barber Lake project [1][8] - Cipher is nearing completion of the 150 MW Phase I infrastructure at the Black Pearl Data Center, with energization expected in May [3][8] - Rig deployment at Black Pearl is anticipated to occur ahead of schedule, with a target of approximately 2.5 exahashes per second coming online one quarter earlier than planned [3][8] Strategic Initiatives - Cipher's CEO highlighted the partnership with Fortress as a significant step in developing a next-generation data center, leveraging Fortress's experience and relationships with hyperscalers [2] - The company aims to scale its mining capacity to approximately 16.0 EH/s by the end of the second quarter and to about 23.1 EH/s by the end of the third quarter [3][8] Market Position and Future Outlook - Cipher is focused on becoming a market leader in industrial-scale data centers for bitcoin mining and high-performance computing (HPC) hosting [7] - The company has a pipeline of 2.8 GW of site capacity and is experiencing continued momentum with HPC tenants at the Barber Lake site [8]

Core Insights - Cipher Mining Inc. reported a solid production performance in April 2025, despite a planned three-day shutdown for maintenance at its Odessa site [3][4] - The company mined approximately 174 BTC in April and sold around 350 BTC, ending the month with a total of approximately 855 BTC held [2][4] - Cipher's operational metrics included 75,000 deployed mining rigs and a month-end operating hashrate of 13.5 EH/s, with fleet efficiency at 18.9 J/TH [2] Production and Sales Metrics - BTC Mined: 174 BTC [2] - BTC Sold: 350 BTC [2] - BTC Held: 855 BTC [2] - Deployed Mining Rigs: 75,000 [2] - Month End Operating Hashrate: 13.5 EH/s [2] - Month End Fleet Efficiency: 18.9 J/TH [2] Financial Highlights - Estimated power sales in April were equivalent to approximately 3 BTC, based on a month-end bitcoin price of $94,808 [10] - Approximately 24 BTC were mined at joint venture data centers representing Cipher's ownership [10] - Approximately 379 BTC were pledged as collateral [10] Management Commentary - The company plans to provide a business update during its earnings call scheduled for May 6, 2025 [3] - The power provider is entitled to 5% curtailment hours per annum under the power purchase agreement [3] Company Overview - Cipher focuses on developing and operating industrial-scale data centers for bitcoin mining and high-performance computing (HPC) hosting [5] - The company aims to be a market leader in innovation within the bitcoin mining sector and data center construction [5]

Core Viewpoint - Cipher Mining Inc. is set to provide a business update and release its first quarter 2025 financial results on May 6, 2025, before U.S. markets open [1] Group 1: Upcoming Events - The company will host a conference call and webcast on May 6, 2025, at 8:00 a.m. Eastern Time [1] - A live webcast and replay of the conference call will be available on Cipher's investor relations website [2] Group 2: Company Overview - Cipher focuses on developing and operating industrial-scale data centers for bitcoin mining and high-performance computing (HPC) hosting [3] - The company aims to be a market leader in innovation within bitcoin mining growth, data center construction, and as a hosting partner for major HPC companies [3]

The latest trading session saw Cipher Mining Inc. (CIFR) ending at $3.06, denoting a -0.65% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.1%.The the stock of company has risen by 32.76% in the past month, leading the Business Services sector's loss of 4.91% and the S&P 500's loss of 4.29%.Investors will be eagerly watching for the performance of Cipher Mining Inc. in its upcoming earnings disclo ...