Cipher Mining (CIFR) - 2025 Q1 - Quarterly Results

First Quarter 2025 Highlights and Business Update 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][3][6] - 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][4] 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 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 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 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 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] 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 This section provides standard corporate information, including Cipher's business focus, forward-looking statement disclaimers, and investor relations contact details About Cipher 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] Forward-Looking Statements 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][10] - 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][12]